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FINANCIAL TIME 



Europe's Business fSTewspacier 


Copper 

LME 3 month, S per tonne 
2,800 - 


2,600 


2,000 J— * 


May 1994 
SouwFTGnpNta 


Copper surges: 

Copper reached a four- 
year high on the London 
Metal Exchange alter it 
rebounded from a morn- 
ing bout of selling. The 
three months delivery 
contract reached $2,751 a 
tonne at the close, an 
increase of $68.50. Other 
base metals followed cop- 
per's lead and all ended 
the day with substantial 
gains. Commodities. 

Page 33 


BSfcyB chief stands to get £3rm Sam 

C hisholm, chief executive of British Sky Broadcast- 
ing. could receive up to £3m ($L92m) in salary and 
bonuses this year, according to the pathfinder pro- 
spectus for the satellite television venture. Page 19; 
Lex, Page 18 

Lottery fever sweeps Britain: Britons bought 
up £7m ($&2m) worth of tickets in the first 12 hours 
after the launch of a national lottery. The first draw 
wfli be on Saturday. Page 18 

Profits surge predicted: West German 
industrial profits could jump by 150 per cent this 
year as a result of recovery and higher productivity. 
Munich-based economic research institute Ifo fb re- 
cast. ED recovery strengthening. Page 2 

ISultlmedia link: Japanese consumer electronics 
company Sharp and Fujitsu, the country’s biggest 
computer maker, are to co-operate in multimedia 
markets by developing new products based on 
mobile communications, information processing 
and imaging. Page 23 

Arrest rejected: An Italian appeal court rejected 
Milan magistrates' second request for the arrest of 
Marcello DellTJtri, managing director of Publitalia, 
the advertising arm of the Fininvest media empire 
of prime minister Silvio Berlusconi. 

British Steel, Europe’s second-biggest steel 
maker, raised its dividend after half-year pre-tax 
profits surged from £27m to £159m - the company’s 
best interim result since 1990-199L Page 19; Lex, 
Page 18 

Signing postponed: The Angolan government 
and Unita rebels have postponed signing a peace 
deal to end Angola’s 20-year civil war. It was to 
have been signed in Lusaka, Zambia, today . Page 4 

Doctors stop work: M6decins sans Frontihres 
halted operations at Rwandan refugee camps in 
Bukavu, Zaire. The French medical aid agency said 
killers linked to the ousted Rwandan government 
had instigated a reign of terror. 

Portugal offers asylum: Portugal offered 
asylum to 29 East Timorese students demonstrating 
in the grounds of the US embassy in Indonesia. 
Meanwhile Indonesian police arrested about 80 East 
Timorese in rioting in the territory. Indonesia 
invaded the former Portuguese colony in 1975. 

English daily for Czechs: The Bohemia Daily 
Standard - the Czech Republic’s first English-lan- 
guage daily newspaper - was launched yesterday to 
cater for English-speaking visitors and residents. 
Observer, Page 16 

FA brings charges against Grobbelaar: 

Bruce Grobbelaar, the goalkeeper who plays for 
English soccer team Southampton, is to face Foot- 
ball Association charges over allegations that he 
took bribes to fix matches. 


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TUESDAY NOVEMBER 1 5 1994 


Yeltsin warns of 
renewed friction 
with Washington 

Russian president Boris Yeltsin yesterday forecast 
new friction between his country and the US after 
last week's Republican victories in the US mid-term 
polls. In his first public comment on the elections, 
Mr Yeltsin predicted a tougher US stand on foreign 
policy and military issues, saying: “We should 
acquire contacts with the Republicans to balance 
our relations.” Page 18; Foreign policy gridlock. 
Page 17 

Kerkorian on the attack: Kirk Kerkorian. 
billionaire US investor and the biggest shareholder 
in Chrysler, attacked the carmaker's anti-takeover 
defences and said he wanted to raise his Chrysler 
stake. Page 19 

WEU pledge on Bosnia ar ms: Members of the 
Western European Union defence group pledged to 
maintain the arms embargo against Bosnia despite 
the US withdrawal Several WEU countries deplored 
the US position. Page 2 

Shell to expand in Italy: Royal Dutch Shell is 
buy the half-share in Italy's MonteSheU petroleum 
joint venture which belongs to Edison, the energy 
subsidiary of industrial group Montedison. Page 19 


Norway steps up campaign for Yes vote 

and Hugh Camegy In Stockholm Brundtland government seeks to quell fears over loss of independence . 

t . 1,1,11, iM,nniinoR» cfmntr loorl in thu nnimnn noils She underlined the belief cm tn nress hrnne the Yes Tnessnee as Ypjcterdav the Swedish econ- 


on EU 


By Karan Fossil In Oslo 

and Hugh Camegy In Stockholm 

Norway’s Labour government 
yesterday stepped up its cam- 
paign to win approval for joining 
the European Union in a referen- 
dum on November 28, after Swe- 
den's vote in favour of member- 
ship on Sunday. 

With Sweden and Finland now 
set to join the Union on January 
1, the pro-EU camp is hoping to 
swing Norwegian opinion to a 
Yes vote with an appeal not to 
leave the country isolated. Until 
□aw. the opposition has held a 


strong lead in the opinion polls, 
reflecting deep-seated suspicions 
in Norway that membership will 
erode Oslo’s independence and 
control over its rich oil and fish 
resources. 

Mrs Gro Harlem Brundtland. 
prime minister, said: “Norweg- 
ians are well aware that Sweden 
is both our closest and most 
important neighbour. It’s our 
main trading partner and that 
has implications for Norwegian 
jobs.” 


She underlined the belief on 
both sides of the campaign in 
Norway that the outcome will be 
strongly influenced by the Swed- 
ish vote. “Many people waited 
until the Swedish vote was 
known before ura king up their 
winrin, a pd many more are not 
likely to decide until the last 
week or even during the last days 
before the referendum,” Mrs 
Brundtland said. 

The prime minister wfll have 
an important platform this week 


to press home the Yes message as 
she hosts a regular meeting of 
her fellow Nordic prime minis- 
ters in the northern city of 
Tromso. Among them, only she 
and the Icelandic prime minister 
will be a non-member, or non- 
member-elect 

Norway Is the last to vote of 
the four European Free Trade 
Area applicants, which are aim- 
ing to gypanrf the EU from 12 to 
16 members. . Austria voted 
heavily In favour last June. 


Yesterday, the Swedish econ- 
omy won an immediate benefit 
from the EU vote. Long-term 
interest rates, in recent months 
driven up to high levels partly 
because of uncertainty over the 
referendum outcome, fell signifi- 
cantly. The krona strengthened 
and the Stockholm stock 
exchange rose Z3 percent. 

In Norway, : the Yes campaign 
plans a big push in the final two 
weeks, arguing ED member- 
ship will help to secure jobs at a 


Biggest of recent German healthcare deals 


BASF buys Boots 
prescription drug 
arm for $1.4bn 


time of high .unemployment; 
warning that investment, produc- 
tion and jobs would be moved 
outside the country if it is 
rejected. 

Tt would be a nightmare for 
Norwegian companies should we 
decide to stay outside the 

Continued on Page 18 
Norway's trade surplus rises, 
Page 2 

Oslo piles on pressure for EU 
entry. Page 3 
Editorial Comment, Page 17 
High political price to partner- 
ship, Page 17 


Clinton 



By Daniel Green In London and 
Christopher Parkes in Frankfurt 

BASF, the German chemicals 
manufacturer, took its biggest 
step yet into the pharmaceuticals 
industry yesterday by agreeing to 
pay “about £8S0m” ($1.4bn) for 
the prescription drugs arm of 
Boots, the UK retailer. 

The proposed deal, still subject 
to detailed contract discussions, 
would be BASF’s third in two 
months. 

The pace of dealmaking indi- 
cates a determined — if belated — 
effort to improve the perfor- 
mance of Knoll. BASF’s drugs 
division. Knoll has aimnai gales 
of only DM2bn and fell into loss 
last year, compared with Bayer’s 
drugs business, which contrib- 
utes about two thirds of group 
profits from annual sales of 
DM8bn ($5.3bn). 

BASF said yesterday the ratio- 
nale for the Boots acquisition 
was “both therapeutic and geo- 
graphic”. Boots is strong in the 
US. UK and Commomn wealth 
countries while BASF has most 
of its business in continental 
Europe. 

BASF also wants Boots’ exper- 
tise in nervous-system drugs. 
Boots has licences to develop two 
such drugs, with projected 


Coalition in 
Dublin faces 
break-up 

By John Murray Brown to DitoRn 
and David Owen 

The survival of Ireland’s Fianna 
Fail-led coalition government 
was under increasing threat last 
night, throwing fresh doubt over 
the future pace of the Northern 
Ireland peace process. 

As Mr John Major, the UK 
prime minister, was outlining 
proposals to bring Ulster’s loyal- 
ist groups into the talks process 
in a speech at the Lord Mayor’s 
banquet, Mr Albert Reynolds, his 
Irish counterpart, was preparing 
for today’s parliamentary show- 
down with his Labour party 
partners. 

The crisis, centred on Labour 
allegations or government mis- 
handling of an extradition case 
involving a paedophile Roman 
Catholic priest, looks certain to 
end the 22-mouth coalition. 

Mr Reynolds was in consulta- 
tion with his Fianna Fail minis- 
ters yesterday. If the crisis is 
unresolved and Mr Reynolds 
loses a vote of no confidence be 
could seek tbe permission of Mrs 
Mary Robinson, the Irish presi- 
dent. to dissolve parliament, and 
call early elections. 

Alternatively, and some politi- 
cal observers believed this more 
likely yesterday. Mrs Robinson 
could ask the opposition parties 

Continued on Page 18 


launch dates at the end of the 
decade. Until then, BASF will 
have to make do with an old and 
small product portfolio. 

In the first half of 1994, Boots 
achieved prescription drugs sales 
of £226m and pre-tax profits of 
£498m. Spending on research and 
development was £33m. 

Most of Boots’s prescription 
drug sales and profits come from 
Synthroid, a thyroid drug avail- 

Lex -....Page 18 

Boots drugs sale Page 28 


able only in the US. The drug had 
first-half sales of $U7m - outside 
the world's top 100 best sellera. 
Synthroid, likp all other signifi- 
cant Boots products, has no 
patent protection. 

Older drugs have been a cen- 
tral theme of BASF's deals 
recently. Last month it bought 
rights to 80 out-of-patent generic 
drugs from Hexal Pharma and 
signed a deal with Ivax. the sec- 
ond-biggest generics company in 
the US, to distribute dings in 
Europe. 

In global terms, the Boots deal 
is small. BASF’s Pharma division 
has annual sales of DM2bn. With 
the Boots operation. BASF would 


move from about 40th biggest in 
the world in terms of drugs sales 
to about 30th. 

The acquisition would never- 
theless be the biggest of the 
recent forays into healthcare by 
fi rman chemicals companies. 

In March, Bayer spent $l8Qm 
on a 28.3 per cent stake in 
Schein, a privately owned US 
group. That followed last year's 
$546m purchase by Hoechst of a 
51 per cent stake in Copley Phar- 
maceuticals, another US com- 
pany. 

For Boots, toe proposed deal 
ends months hf speculation over - 
Boots’s intentions The company 
put its prescription drugs busi- 
ness up for sale when adverse 
side-effects of its most promising . 
drug, the heart treatment. Manb- 
plax, forced it- hr 
abandon its devetopn^tS-v^*;: 

Yesterday’s decision commits 
the UK company to developing as 
a retailer, after it has spent most 
of its 140-year history trying to 
combine healthcare with shop- 
keeping. 

BASF beat several rivals to the 
deal, including a management 
buy-out team. Other companies 
that had been in talks with Boots 
included Zeneca and Medeva of 
the UK, hut no agreement was 
reached on price. 





'Vi 

i - v 



President Bill Clinton, in Indonesia for the Apec leaders conference, 
talks to Japanese prime minister Tcrariichi Murayama toning a walk 
in the garden qf tbe US ambassador's residence in Jakarta yesterday 


TRW finds partner 
for telecoms venture 


By Alan Cane In London 

The race to establish the first 
global satellite system for mobile 
phones intensified yesterday as 
TRW, the large US-based aero- 
space manufacturer, announced 
an equity partner for its S2bn 
Odyssey project 

It said that Teleglobe, a Cana- 
dian provider of intercontinental 
telecommunications services, had 
agreed to take part in a joint ven- 
ture designed to put the satellite 
system in orbit for the start of 
operations In 1998. 

Tbe aim is to build a network 
of communications satellites able 
to provide personal voice, fax and 
paging services to subscribers 
anywhere in the world. Custom- 
ers will use a pocket telephone 
similar to existing cellular 
phones. The service is likely to 
find its greatest use in remote 
areas with little telecoms infra- 
structure. 

The Odyssey project, planned 
for four years, will compete with 
several similar ventures. These 
include Iridium, in which the 
main partner is Motorola, the US 
electronics company: Globalstar, 
which is being developed by 
Loral, the US defence group; and 
a system planned by an affiliate 
of Inmarsat, which provides 
mobile communications services 
to maritime and aeronautical 
markets. 

Iridium is expected to cost 


CONTENTS 


$3.4bn, while Globalstar will 
require an investment of $L8bn. 

To meet the estimated $2bn 
cost of Odyssey. 51bn is expected 
to be raised through debt Of the 
rest, TRW, which had revenues 
of $7.9bn last year, is providing 
$l00m and Teleglobe, with 1933 
revenues of C$L4bn, 350m. The 
balance is expected to be found 
from equity partners both strate- 
gic - such as telecoms operators 
- and financial 

Mr Charles Slrois, chairman 
and chief executive of Teleglobe, 
said yesterday that Odyssey 
would essentially operate as a 
wholesaler of personal telecoms 
capacity. It would market its ser- 
vices through local distributors 
which might be strategic part- 
ners in the venture. 

He said Odyssey bad advan- 
tages over competing systems. 
Odyssey's satellites would be in 
medium orbit - about 6,000 miles 
above the earth - enabling It to 
cover the globe with only 12 sat 
ellites. Iridium, which he saw as 
the most serious rival, required 
66 small satellites in low orbit 

Mr Sirois thought calls over 
Odyssey would cost $1 a minute 
compared with an estimated $3 
for Iridium. 

TRW has applied to the US 
Federal Communications Com- 
mission for a licence to operate 
the Odyssey system. The FCC is 
expected to make its decision in 
early 1995. 


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© THE FINANCIAL TIMES LIMITED 1994 No 32.524 Week No 46 LONDON • PARIS • FRANKFURT ■ NEW YORK ■ TOKYO 






for deal on 
N Korea 

By Peter Montagnon in Jakarta 

US president Ml CUnton is using 
the Asia-Pacific Economic 
Co-operation forum to drum up 
support for his nuclear deal with 
Noith Buna. 

Speaking after meetings with 
leaders from dhina Japan, Sqnrti 
Korea and Australia, he said the 
North Korean accord had been 
tiie most important topic of their 
discussions. 

AH had indicated support for 
the agreement, “which marks a 
historic step to freeze,' and ulti- 
mately to mid, the greatest secu- 
rity threat in this region”. 

Under the dwal, Pyongyang has 
undertaken to giwirinn efforts to 
. manufacture and stockpile 
nuclear weapons. 

Ait expHdt 'gestare of support 
- for it would help to rebuild the 
. credibility of US foreign policy 
after the landslide Republican 
..victory in last week’s mid-term 
elections, and would go some 
way to distract attention from 
the persistent intrusion of human 
rights issues into a summit that 
was supposed to be primarily 
devoted to trade policy. 

It may also help to persuade 
North Korea to live up to its 
undertakings. The deal has 
proved controversial in the west 
because it will be difficult to 
police and enforce. 

It will be five years, before 

Continued on Page 18 

■ ■ Observer, Page 17 


•t 


















FINAN CI AL TIMES TUESDAY NOVEMBER 1 5 1994 


NEWS: EUROPE 


WEU pledge 
on Bosnian 
arms embargo 


By Bruce dark in Noordwijk, 
the Netherlands 

European allies of the US 
pledged yesterday to maintain 
the arms embargo against Bos- 
nia, despite Washington’s 
abrupt withdrawal from the 
operation, which they almost 
unanimously regretted. 

The nine full members of the 
Western European Union - a 
defence club which is emerging 
as the European pillar of Nato 
- also agreed on the need to 
solve the Bosnian war by 
peaceful means, including the 
efforts of the “contact group" 
of senior officials from Qve 
nations. The contact group, 
whose credibility has been bat- 
tered in recent days, will meet 
in London on Thursday. 

Several WEU countries 
deplored the US position on 
grounds that it implied support 
for a military solution, in Bos- 
nia- Turkey - an associate 
member of the WEU - was 
alone In voicing approval for 
President Bill Clinton's move 
last week, which took his allies 
by surprise. 

The Bosnian issue dominated 


a meeting in this windswept 
Dutch seasfde town or nine 
WEU nations and 15 other 
countries - nine of them ex- 
communist - which enjoy an 
associate or observer status. 

Mr Willy Claes, the Belgian 
politician who has just taken 
over as secretary-general of 
Nato. will fly to the US this 
week with a warning that 
transatlantic differences could 
scupper any efforts by the west 
to provide security and stabil- 
ity for ex-communist countries. 

“On both sides of the Atlan- 
tic, we must avoid decisions 
which can endanger solidar- 
ity," Mr Claes said. 

Mr Claes added that Nato 
would continue to enforce the 
embargo against Bosnia 
because it had been mandated 
to do so by the United Nations. 
His implied criticism of the 
move, forced on the US presi- 
dent by Congress, marked one 
of the few occasions in Nato 
history when the holder of the 
top job in the affiance has cen- 
sured Nato's most powerful 
member state. 

The WEU gave broad 
approval yesterday to a Dutch 



Milosevic puts 
more pressure 
on the media 


Nato chief Willy Claes (left) talking to WEU secretary-general 
Wbn van Eekelen at a meeting in Noorwtjk, the Netherlands ru> 


paper on upgrading defence 
co-operation in Europe but 
lively discussion over Bosnia 
left less time than expected to 
discuss the proposal, which 
Britain has reservations over. 

However, UK officials con- 
firmed that they were soften- 
ing their traditionally sceptical 
attitude to purely European 
security initiatives by cau- 
tiously approving a Franco- 
German move to set up a joint 
armaments agency, as long as 


it was open to all WEU mem- 
bers and efficiently managed. 
■ Croatia yesterday threat- 
ened to intervene if Bihac, the 
north-western Moslem enclave, 
was in danger of falling to Serb 
forces, writes Laura Silber in 
Belgrade. At the same time, 
the Bosnian Serbs kept up 
their assault on Bihac. Serb 
forces have recovered 80 per 
cent of the land seized by Mos- 
lems during their two-week 
offensive there, the UN said. 


By Laura SBber in Belgrade 

President Slobodan Milosevic 
of Serbia is threatening to ban 
the last independent newspa- 
per In Belgrade, its editors said 
yesterday. 

The move comes at a time 
when the Serbian economy 
appears in danger of collapse 
and the president is lacing crit- 
icism within his own party and 
the country for his embargo 
against the Bosnian Serbs- But 
also it appears to reflect his 
renewed confidence after being 
courted by the international 
community as the willing 
to make peace in Bosnia 

Last week. Mr Ivica Dade, 
spokesman for Serbia's ruling 
socialists, criticised Borba, the 
independent Belgrade daily, as 
an “anti-state" newspaper. 
Government lawyers invoked a 
legal technicality, saying the 
newspaper was not legally reg- 
istered, and therefore, does not 
exist. Borba 's editors dismissed 
this charge as “nonsense”, 
printing their three-year-old 
registration petition 

Mr Branislav Milosevic, man , 
aging director of Borba, yester- 
day said the Serbian president 


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EUROPEAN NEWS DfGEST v- 


French 


. 

.• V : -;" •• • 


probe wi 


had a “carte blanche to do 
whatever he likes in Serbia 
after befog hired as a peace- 
maker". 

Since imposing a political 
and economic embargo an the 
Bosnian Serbs three months 
ago, the Serbian president has 
sacked the editor of PotitDca 
television. The PolitiKa daily 
newspaper, once the flagship of 
Serbian journalism, has 
became a government mouth- 
piece. Studio B, thA frnrmriaTly 
strapped independent broad- 
caster. is also threatened by a 
government-orchestrated 
takeover. 

No relation to the president, 
Mr Milosevic of Barba says the 
move may be a pre-emptive 
strike against potential dissent 
in Serbia. Economic depriva- 
tions have risen. The Yugoslav 

dinar, stable for nearly a year, 
is crumbling. Despite severe 
penalties, a black market has 
re-emerged. Electricity has 
been restricted and shortages 
of staple foods are frequent 

Mr Milosevic may also come 
under increasing pressure to 
review his policy on the Bos- 
nian Serbs if they ranthnr* to 
suffer military setbacks. 


I Hie third French governmen t mini ster to resign in recent 
weeks amid allegations of corruption was formally ; placed: 
under investigation by the French authorities yei&erday.Tfr 
Michel Tfo n gtiw, the co-operation irifoistet'. wha'resigriBd'gvB- 
the weekend, was questioned yesterday afternoon- fear two 
hours by. Mr EricBalphen, investigating magistrate in .&6teff 
outside Paris. • 

The minister, who has since been replaced in the Trench 
cabinet by Mr Bernard JPebr A is under tovestigatton. fbt- 
ancyH improper receipt of corporate funds to oatoiectian wjfo 
the funding of the GauHist RPR. He denies any wroogdaiBg. 

Meanwhile, further allegations of the finks between Ttondi 
«-mn parties ami political parties emerged yesterday^ with’, a 
report in Le Monde connecting Alcatel Alsthom, foe Mtoanb 
mnnications group, with the Republican party, which, is .a 
member of Mr Vaffsry Giscard d'Estafog’s Union &r French 
Democracy (UDF). which governs in coalitfon with thfiRPR. 
Shares dipped temporarily on the Paris bourse after. Le Monde 
carried an article suggesting that one of.the company's subsid- 
iaries had paid FFriL2m (£38Qm) to. the Republican.party to j 
support its 1988 political campaign. The artiCfe claimed the 1 
money was paid into a bank account to Luxembourg coo- ] 
trolled hy a Panamanian company used as a slush ftmd ihr fW I 
Republican party »nd created by Mr Alain Creffier, now man- 1 
aging director of Nomura Bank in Paris and an associate of Mr 
(torard Longuet, the former industry minister forced to resign 
over Republican party funding investigations. Alcat el Alsth nw I 
refused to comment yesterday. Mr Creffier sain have noth- 1 
fog to say. I am talking to my lawyers." Andrew Jack, Paris I 

Patronat chooses new leader . 

Mr Jean Gandois, the former head of Pechiney, the "state- 1 
owned aluminium and packaging group, is set to become the I 
next president of the Patronat, the French employers’ federa- 1 
tion, after winning a dear majority to a vote hy foe arganisa- f 
tion’s executive council. Mr Jean-Louis Giral, the. other candi- I 
date in the contest, said he would withdraw ftffloWtog Ms 2510 ] 
defeat in yesterday's poll Mr Gandois should now be con- 
finned as foe next bead of the Patronat at a meeting of the j 
or ganisation' s 536-member general assembly which is ached- J 
uled for December 13. The contest has been one of the most } 
fiercely fought of recent years. Mr Gandois, a pro-European. ) 
has said he wants to revitalise the; organisation and give it a [ 
s tronger voice in the debate over political and social reforms. I 
Mr Giral, head of the family-run building - contractor. Des- 
quenne et Giral, was regarded as the chainjriou of small and I 
medium-sized industry. He is dose to Mr Jacques Chirac, the J 
Gaullist candidate for next spring's presidential elections. 
John Ridding, Paris .1 

Italian coalition to back vote 

Italy’s right-wing coalition government last night looked set 'to I 
remain together in voting on a self-imposed confidence motion I 
on part of foe 1995 budget The confidence motion had been I 
introduced in the chamber of deputies where the coalition has I 
a majority of 120 to ensure that the populist Northern League 
of Mr Umberto Bossi did not defect from the government’s 
ranks. But as the debate began, a League spokesman told the 
chamber his party would back Its partners even though it 
disliked the imposition of the confidence wintirm The govern- j 
meat’s move related to the introduction of a pardon an build- 
ings built without proper planning permission. The pardon is I 
Expected to laid to a huge influx of new property registration I 
Sees to the tune of LJjOOObn ($l5bn). But members of the 
yovemment coalition, mostly the League, proposed almost 200 I 
□needments. The opposition also proposed others to limit the I 
scope and prevent a blanket approval for Illicit con stru ction I 
iver the past five years. Government business managers I 
irgued that only by a confidence motion could discussion be I 
speeded up. Robert Graham, Rome 

Hungarian growth speeds up j 

1 rapid growth in exports and high investment is pushing the j 
lungarian economy towards an unexpectedly high 4 per cent I 
rowth in gross domestic product this year. But sustainable I 
rowth will remain elusive »mipgc the government cuts spend- I 
og and tigh te ns fiscal policy, Mr Peter Akos Bod, governor of | 
fungary's independent central bank, said yesterday. Address- I 
ig an ET conference on Investing in Hungary. Mr Bod said 
idustrial output was now growing at 7 per cent annually ] 
rhile construction was booming, with 15 per emit growth. I 
Lfter two years of drought-stricken harvests and a disruptive j 
transition to private land ownership, agricultural output, I 
rhicb usually accounts for one third of total exports, is also J 
xpected to rise by 5 per cent this year. The growth is export I 
od investment led, Mr Bod said. Recovery in the Ge rman and I 
ther EU markets is the main force behind an expected 18 to j 
J per cent rise in export volumes this year. This is helping to I 
alance a similar growth to imports of machinery and compo- I 
erds. Virginia Marsh and Anthony Robinson, Budapest J 

-ower Saxony N-waste accord 

he German state of Lower Saxony, bowing to pressure from I 
le federal government, has approved the first shipment of I 
aclear waste to a medium-term storage facility to the north- 1 
■n city of Gorleben. The federal environment minister, Mr I 
laus TOpfer, forced the state's hand with an administrative j 
•tier. The Lower Saxony environment minister, Mrs Monika | 
nefahn, said her approval was conditional on removal of the 
aste within seven years and insisted that foe facility should 
no health risks for people who live in foe area. She also I 1 
ild waste storage facilities should be built up at nuclear 
actors themselves, and that Gorleben would accept no 
ictear waste that had been reprocessed outside Germany. 
ie first shipment of waste, from a reactor in southern Ger- 
any, could take place on November 34. The transport is 
tely to involve one of the largest police actions to post-war 
snnan history. An estimated 4^00 police will be deployed to 
>wer Saxony alone to protect the shipment, and thousands 
ore police will be on the 500km route. Reuter, Hanover I 

3QNOM1C WAT CH 

Norway’s trade surplus rises 

onway's trade balance Norway's trade surplus to 
M October rose to NKr6.143bn | 

S 00m) compared with 
NKr5.523bn in the same 
month a yw earlier, said Sta- 
tistics Norway, the official I 
statistical agency. The 
increase was largely foie to a I 
surge in exports of goods 
such as fish, fish products | 
and m etals, said the agency. ( 
T otal exports, which foc fofte J 
Norway's substantial oil and I 
gas exports, rose by 16 per 
cent in October to I 
NKr22.888bn compared with 

rt-.-*-, m NKri9.757bn for the month a I 

s a - CO : DaS »« an , ym earlier. Total imports to I 

a year earlier, with the largest incre^^n^^^iS!? 11 
timfe and machinery, S SSHSZJoS^ J 

• Portuguese consumer prices rose 0 4 oer cant in I 

after a 0.2 per cent increase to SepteLher^ Sfli? 0ctober 

was 5.6 per cent in October compared with a sa no- I 
average recorded to September. ^ a 55 par cent 

■ The Bank of Spain has forecast growth in emce I 

2,0 08111 toSefoird SSteSaM 

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FINANCIAL TIMES 


TUESDAY NOVEMBER 15 1994 



NEWS: EUROPE 


Kohl lays out plans 
for next four 


By Ntichael Lmderoann In Bonn 

Chancellor Helmut Kohl 
yesterday unveiled his pro- 
gramme for the nest four years 
m government, The document 
outlines measures to combat 
unemployment while keeping a 
*4»ht control on government 
expenditure. 

After almost three weeks of 
negotiation between his Chris- 
tian Democratic Union, its 
more conservative Bavarian 
sister party, the Christian 
Social Union, and the liberal 
Free Democratic party (FDP), 
the government has pledged to 
reduce the federal bureaucracy 
by. at least 1 par cent a year - 
around 13,000 jobs - and to do 
all it can to increase privatisa- 
tion at state and municipal 
level. 

Efforts win also be made to 
reduce the proportion of gross 


Brussels 

reports 

stronger 

recovery 

By Peter Nomum, 
Economics Editor 


Economic’ recovery in the 
European Union Is gathering 
in strength as confidence 
grows in the industrial and 
construction sectors and 
among consumers, the Euro- 
pean Commission reported yes- 
terday: 

The preliminary results erf its 
business and consumer survey 
for October disclosed a sharp 
improvement in industrial con- 
fidence last month and a recov- 
ery in capacity ittnigathm in 
manufacturing Industry to the 
average of the past 11 years. 

The Commission said its 
October survey showed that 
capacity utilisation, which is 
measured every three months, 
jumped to 8L5 per cent among 
mannfactarers in jhe 12 mem-* 
her states^ frcan-. 80.4 per cent in 
July. Utilisation was up 4J. per- 
centagft;poinis from the 77.4 
: res’; cent level-: of -October J3 93 
and half way between^he moet 
recent 772 pear cent low of July 
last year, and the most recent 
high of 85.8 per cent registered 
in the late 1980s. - - 

Britain, according to Corn-, 
mission estimates, had the- 
. highest level of capacity utilis- 
ation sit 352 per cent andwas 
narrowly ahead of the Nether- 
lands and France. Ireland .and 
Spain bad the lowest levels of 
capacity use in the EU. . . 

However; the improvement- 
is manufacturing activity will 
not lead to higher employment 
in the EU. Only in Denmark 
did the number of manufactur- 
ers- sayihg they expected' to 
boost : employment exceed 
those expecting to shed labour. 
•‘The survey revealed that the 
EEFs mdnstrial confidence indi- 
cator, which Is. compiled from 
business peoples’ replies on a 
number of issues such as order 
books and seffihg price expec- 
tations, improved to plus three 
in October from aero in Sep- 
tember and minus 14 in the 
first quarter of this year. This ; 
indicator is now dose to the 
recent high : of plus six 
recorded between 1388 and 1990 
and well above the minus 28 
level registered in the reces- 
sion between 1991 and 1993. 

The index of consumer canfi- 
. fhycft, which collates the views 
of . .households about . their 
finamrial trif natfnn, the general 
economic situation and their 
to make large pur- 
chases was less buoyant. It reg- 
istered Tntnna io last month for 
the EU as a whole, although 
this was an improvement on 
September’s level of minus 12 
and the 1391-93 low of minus 
26. The highest " level reached 
by the EtTs consumer confi- 
dence indicator between 1988 
and 1990 was minus three. 


national product consumed by 
government spending from 51 
per cent to 46 per cent, where 
it was before German reunifi- 
cation in 1989. 

Laws to combat crime would 
be updated and efforts made to 
introduce Europe-wide mea- 
sures. 

Mr Rudolf Scharptog, leader 
of the opposition Social Demo- 
cratic party, said the pro- 
gramme agreed by the three 
parties had avoided discussion 
of all important issues. It was a 
“coalition of weakness", he 
said. 

He said the new laws for for- 
eigners - the me subject on 
which the coalition had been 
specific - amounted to a “polit- 
ical and legal nothing”. They 
would give third-generation 
immigrant children dual 
nationality until 18 and then 
offer them full citizenship if 


years 

they give up their foreign pass- 
port -The Inter-Cultural Coun- 
cil in- Germany said: “This 
attempt, allegedly to make 
integration of foreigners easier, 
will do nothing to change the 
fact that Tin foreigners Kve in 
this country With fflmmishr>ri 
rights.” 

The new cabinet is expected 
to contain 16 ministers, two 
fewer following fusion of the 
education and science minis- 
tries and the ministries for 
family and women. No impor- 
tant changes are expected, but 
Mr Kohl would not name his 
new team until he has been 
confirmed as chancellor in a 
Bundestag vote today. 

The FDP, which has been 
under pressure to cede minis- 
tries following its poor election 
result, will hold on to the for- 
eign, economics and justice 
ministries. It remained unclear 



Finance minister Theo Waigel (centre) reaches for the water bottle held by Chancellor Helmut 
Kohl at yesterday’s news conference in Bonn 


whether Mr GUnter Rexrodt, 
FDP economics minister, 
would keep his job or have to 
give way to forces within the 
party who want him out 
Feverish speculation contin- 
ued yesterday about whether 
Mr Kohl would he re-elected as 


chancellor, given that he can 
only afford to give away four 
votes without losing the abso- 
lute majority. To avoid any 
last-minute mishaps all Bund- 
estag deputies were told to 
report to Bonn last night 
Mr Otto Lambsdorff, honor- 


ary chairman of the FDP, who 
is touring the US, has booked 
himself on three aircraft, 
including Concorde, to make 
absolutely sure he makes it 
back in time, according to Bild 
Zeitung, Germany’s best-sell- 
ing newspaper. 


Chirac’s referendum call countered 


By David Buchan In Paris 

France should bold a referendum on 
any treaty changes resulting from the 
European Union’s planned 1996 
constitutional conference, rather than 
on the final move to economic and 
monetary union already eoshrined to 
the Maastricht pact, Mr Alain 
Lamassoure, EU affairs minister, said 
yesterday. 

He was reacting to the call with 
which Mr Jacques Chirac recently 
opened his presidential campaign for 
France to hold a second referendnmon 
adopting a single currency, in addition 
to its 1992 plebiscite appr ov in g 
Maastricht 

The issue of a stogie currency “is 
already settled”, Mr Lamassoure told 
French radio. But Mr Chirac's Emn 


referendum call, clearly designed to 
give fresh hope to the anti-Maastricht 
camp unreconciled to its narrow defeat 
two years ago, unsettled the financial 
markets and called down criticism 
from the BaHadur government’s more 
pro-European ministers on Mr Chirac’s 
head. 

Mr Lamassonre’s remarks were 
carefully co-ordinated with Mr Alain 
Juppd, the foreign minister who is also 
Mr Chirac's main backer within the 
government and who on Saturday 
succeeded him as interim president of 
the Gaulhst RPR party. Their initiative 
is designed to get the French 
government off the hook on which Mr 
Chirac's Emn referendum idea 
threatened to impale it as well as 
himself. 

Domestic elections will make 


France’s presidency of the EU in the 
first half of next year hard enough 
without France appearing to cast doubt 
on its existing Maastricht commi tment 
through the mouth of Mr Chirac. But 
said Mr Lamassoure, the challenge of 
enlarging (he EU to the east, as well as 
improving its foreign and defence 
policy co-ordination, would almost 
certainly give rise to institutional 
changes in 1996 meriting a 
referendum. 

Mr Lamassoure folly acknowledged 
yesterday that the French presidential 
campaign “unquestionably poses us a 
problem” to the smooth chairing of 
Union business. France wifi begin its 
EU presidency under one president and 
finish it under another. Another 
certainty is a new government after tiie 
May 7 election. 


This means that June 1995 - which 
would otherwise he the busiest month 
of the France's EU presidency as ft 
scrambles to chalk up new directives to 
its credit - will see new French faces 
chairing most or all of the various 
Union councils. 

Meanwhile, Mr Jacques Delore, 
outgoing European Commission 
president, yesterday appeared to 
reduce by a month the suspense over 
whether he will run as Socialist 
candidate for the presidency. He said 
on radio that if he decided not to run, 
be would say so “before Christmas”, to 
give the Socialists time to find another 
champion. It seems, therefore, that the 
nearer Ms silence is maintained to 
January 25 - the new likely date for 
installation of the new Commission - 
the likelier it is that he will run. 


Industry hails 
Swedish vote 
on EU entry 


By Christopher Brown-Humas 
In Stockholm 

The Swedish krona rose 
sharply yesterday in response 
to Sunday’s referendum vote 
hapTring - entry to the European 
Union. But though the increase 
might have damaged the earn- 
ings prospects of the country's 
big export-oriented multina- 
tionals, business leaders did 
not mind in the least, 

The dear endorsement of EU 
membership was exactly what 
they wanted - even though a 
weaker currency might have 
benefited them In the short 
term. “It is the long term 
which is important," said Mr 
Sdran Gy 11. chief executive of 
Volvo, Sweden’s biggest indus- 
trial group. Mr Magnus Lem- 
meL, head of the Federation of 
Swedish Industries, said: “We 
can now begin our way back to 
our lost position at the top of 
the world's industrial coun- 
tries." 

Sweden's current economic 
recovery, after three years of 
recession, has been driven by 
the success of its exporters. It 
was not surprising, therefore, 
that the importance of EU 
membership for Its big compa- 
nies was highlighted repeat- 
edly during the referendum 

rwmp al g n. 

The bosses of the country’s 
multinationals stressed that 
they had to be ahle to operate 
under the same conditions as 
their competitors, as well as to 
influence the outcome erf deci- 


sions affecting the business cli- 
mate in Europe - by far their 
largest market 
“Sweden’s entire wellbeing 
stands or farts on its nwirnegs 


to its markets, in particular to 
Europe,” said Mr Leif Johans- 
son. president of Electrolux, 
the world’s biggest manufac- 
turer of household appl i a n ces. 

Membership was particularly 
important for the pulp and 
paper sector, Sweden's largest 
net export earning industry. 
Ever since Finland voted last 
month in favour of EU entry, 
Swedish forestry executives 
were worried they would lose 
out to their main European 
competitor if they were left 
outside the Union. 

Equally, they wanted to be 
able to influence directives 
coming out of Brussels, partic- 
ularly where - as in the case of 
waste paper recycling - there 
is a direct Impact on the 
amount of Swedish virgin fibre 
going into the paper system. 

A further reason for business 
to back membership was the 
belief that EU monetary con- 
vergence criteria would force 
the government to be more dis- 
ciplined in reducing the coun- 
try’s large budget deficit and 
fok-growing debt. They believe 
tougher government action 
will bring down Interest rates, 
stimulating investment and 
creating jobs. 

Yesterday brought a ghmpse 
of this brighter Tuture. 
Long-term interest rates fell 
sharply, with the yield on the 
five-year benchmark bond 
dropping 19 basis points to 
10.35. The stock market also 
celebrated, rising Z3i per cent. 

A climate of greater investor 
confidence in Sweden should 
bring both increased domestic 
investment and a spurt in 
much-needed foreign invest- 
ment in the country. 


Costs may be underestimated 


Berlusconi faces 
huge aid bill for 
flood damage 


By Robert Graham In Rome 

The Berlusconi government is 
searching for ways to find 
some L7,0Q0bn ®lBbn) in addi- 
tional aid to cover foe damage 
caused by last week's cata- 
strophic flooding in northern 
Italy. 

As an Immediate response, 
the .right-wing coalition 
pledged L3,000bn drawn from 
existing funds. But the final 
assessment of flood damage in 
Piedmont is expected (his week 
and Initial estimates of more 
than Ll0,000bn worth of dam- 
age could prove conservative. 

With very limited personal 
and corporate insurance cover, 
especially to the agricultural 
sector, among the worst 
affected, individuals, compa- 
nies and local authorities are 
looking to the government for 
financial help. 

. . Mr Roberto Maroni, the inte- 
rior minister who has taken 
charge of the relief operation, 
has. done Twnthtng to dispel the 
impression that the govern- 
ment wifi foot the bill Indeed, 
the government seems more 
than ready to do this to offset 
growing criticism over the 
authorities’ handling of the 
disaster. 

The cost of previous disas- 
ters, such as the 2980 Zrptoia 
earthquake to southern Italy, 
were financed by increasing 
taxes on petrol or tobacco. But 
this could prove inflationary 
and the government may well 
opt to issue a special bond or 
introduce a once-cff income tax 

paymtenl 

More than 700 towns and vil- 
lages were hit by the floods 
which began on November 5 in 
the tributaries (rf the River Po. 


Many are still without fresh 
water supplies althou gh mini- 
mal road communications have 
been restored throughout Pied- 
mont This has enabled about 
half of the 10,000 people dis- 
placed by the floods to return 
to their homes. 

As the clearing-up operation 
continues, attention has 
shifted to establ i shing how the 
authorities were caught seem- 
ingly unawares by the floods. 
Magistrates to Turin. Alessan- 
dria and Asti have opened sep- 
arate investigations; and Mr 
Mario Pahrrieri, the prefect of 
Asti, Is being investigated for 
culpable h omi c i d e for his fail- 
ure to prevent death from the 
floods. 

At the same time magis- 
trates are looking into the 
activities management of 
Italy's ervil protection agency, 
which is in charge of prevent- 
ing natural disasters. 

The magistrates are trying in 
particular to establish why a 
fox sett at 1630 on Thursday 
November 3 from the Piedmont 
service for the prevention of 
environmental risks was 
ignored. This fox was marked 
urgent, warned that exception- 
ally heavy rainfall was forecast 
for Saturday November 5 and 
accurately identified the areas 
at risk. 

The warning was sent to the 
regional authorities, but was 
either ignored or played down, 
to one instance it was buried 
under a pile of letters for five 
days. It is even more remark- 
able that in spite of the fact 
that the floods took more than 
24 hours to reach populated 
centres such as Asti and Ales- 
sandria, none of the big towns 
were properly prepared. 


... 


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NEWS: INTERNATIONAL 


Baghdad’s recognition of Kuwait ignored 


UN set to maintain 
sanctions against Iraq 


By Michael uttfejohns at the 
UN in New York 

The UN Security Council 
agreed last night to maintain 
sanctions against Iraq, ignor- 
ing Baghdad’s formal recogni- 
tion of Kuwaiti sovereignty 
and the UN-demarcated com- 
mon border. 

The decision to recognise 
Kuwait by the revolutionary 
Command Council was con- 
veyed personally by Mr Tariq 
Aziz, the deputy prime minis- 
ter, to Ms Madeleine Albright, 
US delegate and current 
Security Council president, 
before the council held 
its regular 60-day sanctions 
review. 

She and other members said 
afterwards that the Iraqi move 
was not even discussed during 
the review. The Security Coun- 
cil scheduled a second private 


meeting to consider how to 
deal with the developments. In 
the meantime sanctions will 
remain in place at least until 
January 14, the date for the 
next review, and probably well 
into 1995 or even longer, offi- 
cials said. 

The US bolstered its case 
against the relaxation of sanc- 
tions by presenting satellite 
photographs of lavish building 
projects, including a retreat for 
President Saddam Hussein on 
a 90-acre man-made 
lake, estimated to have cost 
n^bn. 

Sir David Hannay, UK dele- 
gate to the Security Council, 
called the evidence “quite star- 
tling" and insisted that if the 
Iraqi people were suffering as a 
result of the embargo, Mr Sad- 
dam’s obduracy was to blame 
Anri not the council. 

No m em h er dissented from 


the decision to leave matters 
unchanged. Russia and France, 
partly out of financial self-in- 
terest, had previously pressed 
the council to acknowledge for- 
mally that Baghdad 
had carried out some of its 
obligations and made steps 
that could lead to an end to the 
embargo. 

In a statement to the council 
which was made public after- 
wards, Ms Albright said the US 
did not even accept the recog- 
nition of Kuwaiti sovereignly 
“at face value". 

Referring to the high 
living standards of top Iraqis, 
she said Mr Saddam bad spent 
at least $500m on opulent new 
palaces for himself and his 
family who continued to 
“enjoy uninterrupted supplies 
of ice cream, cigarettes, 
liquor and other imported lux- 
uries.” 




Mr Tariq Aziz, Iraqi deputy prime minister and foreign minister (right), with Iraq’s ambassador to 
the UN. Mr Nizar Hamdoon, outside the UN headquarters in New York last night aut 


In Angola, a ceasefire may not mean peace 

Nicholas Shaxson looks at the economic implications of an imminent second end to the war 

O n a hillside overlooking — . - — — — reduce state control of the ^ I so 

Luanda’s docks, bands About 100,000 civilians have been killed in Uni ta had been due to sign a new peace economy. _ / jo xm «o 

of children trawl Angola since the country’s civil war resumed agreement, also demanded that the UN deploy Central to the plan was the ■ . 


O n a hillside overlooking 
Luanda’s docks, bands 
of children trawl 
through rubbish bins near a 
large, partly finished b uildin g, 
now overgrown. 

The children are refugees 
from a civil war which erupted 
again after a short peace when 
Unita rebels rejected defeat in 
UN-sponsored elections in late 
1992 and returned to war. 

The building was started by 
a Portuguese company as for- 
eign investment flowed into 
oil- and diamond-rich Angola 
after peace accords in 199L It 
was abandoned when the peace 

turned sour. 

Negotiators in Lusaka, the 
Zambian capital, have ini- 
tialled another peace agree- 
ment which was due to be 
signed today. The formal sign- 


About 100,000 civilians have been killed in 
Angola since the country’s civil war resumed 
two years ago. U nman Rights Watch said in a 
report due for publication today, Reuter reports 
from Lisbon. 

The New York-based organisation said both 
sides had been guilty of torture, summary 
executions and the recr uitm ent of child 
soldiers. It urged the United Nations to enforce 
an arms embargo against the two sides. 

The report, released on the same day aa the 
Angolan government and the rebel movement 


Unita had been due to sign a new peace 
agreement, also demanded that the UN deploy 
human rights monitors throughout the country. 

The report, entitled “Angola: Arms Trade and 
Violations of the Law since the 1992 Elections", 
said the Angolan government had become tile 
biggest arms importer in sub-Saharan Africa, 
buying more than S3.5bn of military equipment 
over the past two years. “The government Is 
believed to have mortgaged the next seven 
years of oil production, to finance this huge 
build-up of weaponry," it said. 


ing has been delayed to 
November 20, a UN statement 
said last night 
The agreement had been 
intended to stop the fighting 
hut foreigners and Angolans 
alike had become more cau- 
tious about the country's pros- 
pects. “A lot of money flowed 
recklessly into Angola last 


time,” one economist said. 
“People will be careful now." 

The civil war, which erupted 
on independence from Portugal 
in 1975. has carved Angola into 
a patchwork of government 
and rebel control with towns 
and cities cut off from one 
another by fighting and land- 
mines. 


More than a third of Ango- 
la’s 10.5m people depend on a 
humanitarian aid operation 
costing 2250m a year, the main 
burden of which has been left 
to foreign organisations while 
the government has got on 
with its war. 

An economic programme 
launched in March set out to 


as a serious 

business school, 

we encourage you to 

read the fine 

We're proud of it IMD’s fine print lists the 116 leading companies who take an active part in the institute - our 
Partners and Business Associates. The osmosis that results from this unique partnership between industry and 
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Digital Equipment Corpora Iron 

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Exxon Corporation 

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LEGO Group 

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National Westminster Bank Pic 

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ftrilips International 8V 
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Can Ltd 

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Compagnie de St Gobain 

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MeteffgeseHschaft AG 

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Transact Ud 




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Zurich Insurance Company 



reduce state control of the 
economy. 

Central to the plan was the 
aim to end official exchange 
rates previously used to sub- 
sidise selected sectors of the 
economy. 

Mr Severim de Morais, vice 
minister of p lanning and eco- 
nomic coordination, said last 
month Angola would have a 
Cully floating exchange rate by 
the end of the year. 

The programme had early 
successes in reining in spend- 
ing and reducing annual infla- 
tion from 1,800 per cent in Jan- 
uary to 930 per cent in July, 
according to official figures. 
But Luanda's elite successfully 
derailed a similar programme 
last year. 

The new economic team has 
foiled to get the political sup- 
port needed to curb spending 
and bring the budget deficit, 
last year officially estimated at 
29 per cent of gross domestic 
product, near the programme's 
target of 4 per cent 

The free market exchange 
rate rose rapidly from around 
280,000 kwanza to the dollar in 
mid-September to 640,000 by 
mid-October, as dollars became 
scarce because of demand from 
the secretive defence sector. 
Monthly inflation rose from 7 
per cent in June to 23 per cent 
in August and public sector 
strikes broke out as salaried 
workers saw their real wages 
plummet 

The volatile kwanza 
strengthened to 350.000 in mid- 
month amid signs of an 
approaching peace agreement, 
with some business people say- 
i ing they expected a rush of 
new lending to Angola which 
would temper the dollar’s scar- 
city. 

But little new money has 
come in to date. Official 
requests for IMF support have 
so far been met with polite 
refusal. Financial institutions 
are cautious about lending to a 
country with an external debt 
approaching $llbn and one col- 
lapsed peace agreement behind 
It. 

The disaster of the last 
accords stirred up new mis- 
trust Early disarmament and 
large cuts in defence spending 
are unlikely as long as there is 
any chance that war will erupt 
again. 


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7*5 | « ; 

-HVT ANGOLA ) | 

r* v 

tUuitNA 

■ .V WnWPgi y 

If peace holds, foreigners 
seeking to invest in Angola’s 
non-mineral economy vtend to 
be frustrated not just by con- 
tinued political uncertainty 
but also by bureaucracy, an 
under-educated wo r kforc e and 
confused property laws. 

But three sectors of the offi- 
cial economy could grow if a 
ceasefire h»w«. :-t r v*’ - 

First, despite an estimated 
10m to 20m landmines scat- 
tered across the country, refu- 
gees could return to their fields 
in many parts of the country 
and April's harvests could 
increase sharply from an esti- 
mated 250.000 tonnes this year. 

Long-term agricultural 
potential is large: before 
independence Angola exported 
food and was the world's 
fourth largest coffee pro- 
ducer. 

Second, if a peace agreement 
woe to hold and Unita, which 
has been funding its war effort 
mostly with diamond sales, 
were persuaded to cooperate 
in the anarchic north-eastern 
diamond areas, the govern- 
ment could raise official pro- 
duction from 22m last year 
closer to the 5250m reckoned to 
have leaked out from the Unita 
areas. 

Third, Angola’s mostly off- 
shore ofl industry has largely 
been unaffected by fighting. 
Oil product] cm is expected to 
rise gently from around 550,000 
barrels a day to 700,000 in 
1996, as new fields come on 
stream. 

But Pedro Manuel an Ango- 
lan businessman, echoed a 
widely held caution about bis 
country’s prospects. “There is 
so much hatred after what hap- 
pened last time. A ceasefire 
may happen but that is not the 
same as peace." 



as 



Mrs rihflndrika Kumaratunga, Sri Lanka's new president, 
yesterday appointed her - mother, te a thfrd teem as prime 
minister , but made few other changes, in the. cabinet for the 
sake of continuity. Mrs Kumaratunga, who .won -a sweeping 
victory in last week's presidential polls, swore- in the ektedy 
Mrs Sirima Bandaranaike along with' other catenet Jidnistere, 
keeping alive a family tradition of riding the Sriand rattop, ■ 
Mrs 7&, was the world’s first wuznan to head a ! 

national government when die became &i Lanka’s prime 
mfm'cter after her husband Solomon Bandaranaike was assas- 
sinated in 1959. She served two terms as prime minister in the 
1960s and 1970s and was leader of the Sri Lanka Freedom-party 
fo rmed hy her assassinated husband. — • . - " 

Mrs Kumaratunga kept the finance portfolio and took- over 
the defence ministry, a portfolio which imderthe constitution 
resides with the executive president along, with the post rf 
commander-in-riiief of the armed forces. -/ 

Political analysts said Mrs Kumaratunga’s dedsfantononti- 
pate her mother as prime minister would enable them: tojiwap 
roles easily after the new government met its dectiourpted^e 
to Tnakft the presidency a ceremonial position. Reuter ; Cbfcm&o 

Bhutto offers peace to rivals 

Pakistani Prime Minister Best 
aztr Bhutto yesterday offered 
to make peace with her politi- 
cal opponents after the oppo- 
sition tried to shout, down 
President Farodq : Leghari 
(pictured left), during the 
opening of parliaments Mr 
Leghari’s 45mhrute speech to 

an annual joint sasrion of the 
two-chamber parliament in 

Islamabad was barely audible 
amid the non-stop; chants of 

“Go Leghari, go": .‘Excltad 
deputies pushed, Shoved- and 
hurled insults at one qnatw 
V7 as members of , Ms Bhutto’s 
IV Pakistan People’s party (PPP) 

'? ' formed a protective phalanx 
' around her. PPP. deputies 
lined up on the speaker's dais to keep their banner-waving 
opponents at bay. Bhutto supporters later punched two opposi- 
tion deputies and witnesses said one of them was bleeding 
from the mouth. 

“We have always extended the hand erf friendship to them, " 
Ms Bhutto told reporters later when- asked, about the chances 
erf a dialogue with opposition parties. “Even now the govern- 
ment is willing to talk to them on issues cf national interest," 
she said. The incident followed the arrest on Sunday of Mr 
Mohammed Sharif the father of opposition leader Mr Nawaz 
Sharif, on charges of obtaining loans fraudulently from forei gn 
banks. Reuter, Islamabad 

Hunger worsening in Africa 

Hanger and malnutrition are growing in eastern Africa and 
the continent heeds exceptional aid, according to a report to 
be presented to a council meeting of the United Nations Food 
and Agriculture Organisation (FAO) today. Mr Jacques Diouf, 
who promised to make Africa his priority when elected head of 
Hie UN’s main food agency last year, will detail a worsening 
hunger when he opens the meeting. "Fifteen coun- 

tries in the region are currently facing exceptional food emer- 
gencies and half of these countries are. also being affected by 
civil strife,” the report said. Rwanda and Burundi were listed 
as being extreme cases, and in need, of continued international 
aid and “extrema agricultural rehabSxtefionr. 

The report also said famine nrmditirros were emerging in 
several parts of the Ham of Africa including Ethiopia, Eritrea, 
Ken ya, Somalia and Sudan. 

Mr Diouf: a Senegalese who is the FAO’s first African 
director-general, will address a 49-nation governing council, 
which is meeting far 10 days to discuss and vote an a range of 
agency business. Reuter, Borne 

Switzerland to aid Kyrgyzstan 

Switzerland said yesterday it 
would provide technical and 
financial aid to the former 
Soviet republic of Kyrgyzstan 
under a new co-operation 
agreement A ftnanr-p minis- 
try spokesman said Swiss 
President Otto Stkh (pictured 
left) and Mr Askar Akayev, 
his Kyrgyz counterpart, who 
arrived with a delegation in 
Switzerland for a three-day 
of fi ci al visit, signed the deal 
in the capital Berne. Switzer- 
land will provide SFr4m 
(£lJ5m) of technical aid a 
yea r, c overing agriculture, 
forestry, the dairy industry, 
privatisat ion, a nd help to non-govenunesrtal or ganisations It 
will also provide f in a n cial assistance for energy and health- 
care projects. The two countries have bad Knkg since Switaer- 
fond joined the International Monetary Fund and World Bank 
in May 1992. Kyrgyzstan was one of several former Soviet 
republics which joined Poland in a group that them let Switzer- 
land represent it on the IMF's executive board. Reuter, Berne 



Miami 

International 

iVirport 

has 

landed. 

In Europe. 


IMD -INTERNATIONAL INSTITUTE FOR MANAGEMENT DEVELOPMENT 
Cfaenrin de BeUerive 23, P.O. Box 915. CH-100I LAUSANNE, Switzerland 


Miami International Airport, the Gateway 
to aH the Americas, has now opened a 
European Business Office. For trade, 
tourism and business development 
opportunities, contact us today: 

Miami International Airport 
European Office 

Jose Abascal, 57, 28003 Madrid, Spain 
Telephone: 34 (1 ) 399 31 49 
Fax: 34(1)442 5661 




>Jbi 


o* 




FINANCIAL TIMES TUESDAY 


NOVEMBER 15 1994 


NEWS: INTERNATIONAL 




— S.*- . ' r.V. 


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China to 
overhaul 
social 
security 

By Tony Walker in Beijing 

swee P“S reforms 
of its welfare system to provide 
a social security net for urban 
employees, many of whose jobs 
are under threat in ailing state 
enterprises. 

The official Xinhua news 
agency yesterday reported that 
next year “top priority" would 
be given to building a better 
insurance system for unem- 
ployment, pensions and medi- 
cal care. 

China's plans to overhaul its 
existing rudimentary social 
security system reflects grow- 
ing concern about the effects of 
changes that have all but 
wiped out the previous cradle- 
to- grave welfare arrangements 
based on individual work 
units. 

Municipalities such as 
Shanghai have been experi- 
menting with new social secu- 
rity measures for the past year 
or so, but Beijing has clearly 
decided that political pressures 
oblige it to overhaul its exist- 
ing schemes. 

Plans to construct a compre- 
hensive social security net for 
China's approximately loom 
urban workers come in 
response to strong pressures 
from increasing numbers of 
unemployed and under- 
employed workers. 

China's official urban unem- 
ployment stands at 2.6 per 
cent, but this figure vastly 
understates the problem. Num- 
bers of jobless in some indus- 1 
trial cities may be as high as 20 
per cent of the workforce. , 
Under the proposed new I 
scheme all enterprises, includ- 
ing state-owned, collective, 
joint venture and private ones, 
will have to take out unem- 
ployment insurance at a cost of 
l per cent of pay-roll. This 
money will be paid into a 
nationally administered fund. 

The government is also plan- 
ning to establish new superan- 
nuation and medical care 
arrangements for pensioners. 
This move reflects official con- 
cern over tiie-fate of many pen- 
sioners buffeted by -rising 
prices.. 

» The ---authorities- also 
announced they would set up a 
special insurance fund for peo- 
ple laid off from bankrupt 
enterprises and .enterprises 
undergoing reorganisation. 

Beijing has made reform of 
its state enterprises, including 
liquidation of the worst cases, 
its main priority, but has hesi- 
tated to implement its plans 
because of fears of worker 
unrest. 

The establishment of a new 
system is an attempt to put in 
place social security arrange- 
ments for the long term. But 
China faces technical difficul- 
ties establishing such compre- 
hensive schemes. New welfare 
arrangements are expected to 
be a drain on the budget as 
China proceeds with a painful 
rationalisation of its state sec- 
tor where an estimated 50 per 
cent of enterprises are losing 
money. 

• China has completed a draft 
law to cover safety in its 
nuclear power industry and 
expects the legislation to be 
ratified soon by its parliament, 
the National People's Con- 
gress. the official People's 
Daily said yesterday, Reuter 
adds' from Beijing. 

The Nuclear Safety Depart- 
ment, responsible for drafting 
the law, has already 
announc ed 16 regulations gov- 
erning nuclear safety and 
issued 60 documents to serve 
as guidelines for nuclear 
safety, the newspaper said. 
Nineteen more regulations on 
nuclear safety are still being 
drafted. “This will enable 
administration of our nuclear 
safety to come on track 
through, a law," the newspaper 
said. 

China's fledgling nuclear 
industry has never reported an 
accident or polluted the envi- 
ronment. it said. China plans 
to have 10,000 MW of nuclear 
generating capacity opera- 
tional or under construction by 
the year 2001. 


Taiwanese vote to settle their island’s identity 

Laura Tyson reports on divisions over whether Taiwan will seek to be a Chinese province or a sovereign state 


T aiwanese voters will cast a 
ballot for the island's identity 
as much as for cleaner streets 
in local elections early next month. 

The long-ruling Nationalist party, 
or Kuomintang (KMT), is marshal- 
ling ail the considerable forces at Its 
disposal to maintain control of the 
two biggest cities and a governor- 
ship on the island it officially calls a 
province of China - the Republic of 
China, that is, not the People's 
Republic of China. 

The KMT, which retreated to 
Taiwan in 1949 after defeat at the 
hands of Mao Zedong's communist 
armies, now faces a formidable chal- 
lenge to its political survival in the 
shape of the Democratic Progressive 
party, which advocates an indepen- 
dent Taiwan. It also suffered from 
attrition when disaffected conserva- 


tive KMT members broke away to 
form the New Party last year. 

Ironically, old foes have become 
allies as the Nationalists have been 
aided in their electoral campaign by 
Chinese officials, who have in recent 
days reiterated Beijing's longstand- 
ing threat to use force against 
Taiwan should circumstances war- 
rant. President Jiang Zemin yester- 
day reportedly told US President Bill 
Clinton at the Asia-Pacific Economic 
Co-operation forum in Jakarta that if 
Taiwanese authorities declare inde- 
pendence. China would certainly not 
stand by and do nothing. 

Next month's polls represent the 
penultimate stage in a process of 
democratisation which began in the 
mid-1980s, marked by successive 
elections starting from the lowest 
levels of government and culminat- 


ing in direct presidential elections in 
early 1996. 

In the December 3 elections voters 
will for the first time choose mayors 
for the cities of Taipei and Kaohs- 
iung. where about a quarter of 
Taiwan's 2lm residents live, and a 
governor for Taiwan province, com- 
prised of territory other than the 
two cities and a few outlying islands. 
The posts were previously 
appointed. 

Should a DP P candidate win. it 
would be the first time the leading 
opposition party would have cap- 
tured a significant administrative 
post. The KMT accuses the DPP of 
being irresponsible and incapable of 
governing, while the DPP says the 
ruling party is irredeemably corrupt 
and inefficient. 

The Taipei mayoral seat is widely 


expected to go to Mr Chen Shui-bian, 
a popular DPP lawmaker in 
Taiwan's Legislative Yuan, or parlia- 
ment. Mr Wu Dun-yiht the KMT 
incumbent, is seen likely to retain 
the mayorship of Kaohslung. 

But it is the symbolically signifi- 
cant post of provincial governor 
which is especially critical to the 
KMT, and it has spared no expense 
in drawing on its vast financial 
resources to ensure victory for the 
incumbent candidate. Mr James 
Soong. Mr Soong is one of the few 
remaining top Taiwanese politicians 
to have been bom in mainland 
China, the others having been 
shunted out of the KMT’s main- 
stream faction in recent years. 

The KMT cannot afford to lose the 
provincial governorship poll because 
it is seen as referendum on the iden- 


tity of Taiwan and future of rela- 
tions with China. The KMT says 
Taiwan is a province of China and 
supports eventual reunification with 
China under condition of peace and 
democracy on both sides of Taiwan 
Strait. The DPP says Taiwan is not a 
Chinese province but an indepen- 
dent nation and thus the entire pro- 
vincial government structure is 
redundant and should be abolished. 

The KMT also fears that if the 
DPP wins control of the provincial 
government, which administers 
three-quarters of the island's terri- 
tory and population, something anal- 
ogous to the “Yeltsin effect" could 
materialise, at least in theory - a 
reference to how the power of the 
head of the Russian republic 
eclipsed that of the leader of the 
former Soviet Union. 


Political analysts say that a win 
by the DPP’s candidate. Mr Chen 
Ting-nan. would pose an indirect 
threat to the legitimacy of the presi- 
dent himself, as he was in effect 
Installed by a rubber-stamp parlia- 
ment rather than popular mandate. 

In practice, President Lee Teng-hui 
enjoys enormous popular support, 
even among many DPP members, 
because he is a native Taiwanese 
and It is widely believed that he 
secretly favours the island's inde- 
pendence. As the polling day draws 
nearer, the KMT will likely play the 
“president card", in the parlance of 
the local media, and bring Mr Lee on 
an extensive tour of the island to 
win votes. The same strategy helped 
carry the KMT to victory in island- 
wide polls year ago which the DPP 
was predicted to win. 



Junichiro Koizumi: recipe for dramatic change 

Brokers fight for 
private savings 


By Emiko Terazono In Tokyo 

Branch managers at Nikko 
Securities, a leading Japanese 
broker, have been scrambling 
to gather their ideas together 
ahead of the stock market sem- 
inars for Individual investors 
held today. 

Over the next few weeks, the 
brokers are expected to pursue 
a fierce media campaign 
against the commercial banks 
in bidding for the ordinary 
salaryman’s seasonal bonus. 
But many officials of the bro- 
ker's 126 retail branches are 
uncertain how much interest 
they can muster among their 
individual clients in time to 
get them to Invest their 
winter bonus payments, to 
be distributed next month, in 
shares. 

With the Nikkei index down 
3.6 per cent since the start of 
the month, and many traders 
nervous over the benchmark's 
possible foil below the 19,000 
psychological support level, 
some Nikko managers do not 
expect high participation. 

What worries the officials, 
and the Tokyo financial com- 
munity. is that while overseas, 
corporate and large institu- 
tional. investors have been cau- 
tiously investing in the stock 
market over the past few 
years, retail investors, who 
have shunned shares since the 
market started its decline in 
1990, have shown no signs of 
returning. 

Participation in daily stock 
market trading has declined 
steadily, with last month's 
activity by private individual 
investors totalling 14.4 per cent 
of total market turnover, a 


sharp fell from 43 per cent 10 
years ago. 

Many retail investors are 
still licking their wounds from 
the post “bubble" era plunge in 
share prices, with the bulk of 
them sitting on unrealised 
losses. The problem has been 
exacerbated by disastrous pri- 
vatisations of state, owned 
enterprises. 

The government and brokers 
had hoped that flotation of 
such companies as Bast Japan 
Railway, part of the former 
Japan National Railways, and 
Japan Tobacco, the tobacco 
and salt monopoly, would lure 
private investors back. Instead, 
the Nikkei plunged 20 per cent 
in a month subsequent to JR 
East’s listing in October last 
year, while Japan Tobacco has 
fallen 33 per cent from its pub- 
lic offering price. 

Mr Jason James, strategist at 
brokers James Capel in Tokyo. 
says a gradual rise in interest 
rates has damaged the case for 
a boom in retail stock invest- 
ment seen in the US and the 
UK over past few years. While 
low interest rates prompted US 
and UK retail investments into 
equities, in Japan, the rise in 
bank deposit rates has kept 
individual investors from the 
equity market 

So how wtQ the brokers try 
and entice retail clients to 
invest their hard earned cash? 
Many hope that by steering 
clear of the stocks, they can 
appeal to their clients. 

“We’re offering them deposit 
type investments." says one 
Nikko branch manager. “We 
have to convince people that 
we also offer safe and profit- 
able products," he says. 


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Bold campaigner for reform in Japan 

Michiyo Nakamoto on a call for privatisation of the country’s postal ministry 


I n Japan's much touted 
drive to reform its bloated 
bureaucracy, one force that 
has been woefully absent is 
clear leadership from the coun- 
try's politicians. 

In spite of all the talk by the 
authorities, the pace of reform 
to date has been slow and the 
steps taken' or being proposed 
have been half-hearted and 
superficial. 

As Japanese industry, and 
the US government, become 
more vocal in pressing for fur- 
ther deregulation. Mr Juni- 
chiro Koizumi, an eighth-term 
member of the House of Repre- 
sentatives and former minister 
of posts and telecommunica- 
tions. has emerged as a rare 
politician with a recipe for dra- 
matic change. 

The soft-spoken Mr Koizumi 
has ruffled many feathers in 
the Japanese political and 
bureaucratic community by 
calling for the break-up of the 
postal ministry as the key to 
reducing the role of govern- 
ment in the country's affairs. 

“The best way to tackle the 
issue of administrative reform 
is to privatise the 
activities of the postal minis- 
try." Mr Koizumi declares. 
“The aim of administrative 


and fiscal reform is small gov- 
ernment. I believe that means 
that what private business can 
do should be left to the private 
sector and the government’s 
role should be restricted to a 
small number of essentia] func- 
tions." 

In that respect the postal 
ministry is clearly a leading 
candidate for reform because 
so many of its businesses are 
easily transferred to the pri- 
vate sector. Mr Koizumi says. 

Japan's ministry of posts and 
telecommunications, apart 
from being responsible for 
delivering the nation's mail, 
runs the largest savings sys- 
tem and the largest insurance 
company in the world. Depos- 
its in postal savings accounts 
as of March, 1994 amounted to 
Y183.535bn (£74.28hn) while the 
assets of the postal insurance 
fund totalled Y74,345bn. 

The postal ministry thus 
competes not only with private 
delivery’ services but with pri- 
vate banks and insurance com- 
panies as well. Putting the 
postal ministry's businesses 
into private hands would 
reduce the role of government 
in economic affairs and could 
serve as a model for privatising 
many other activities per- 


formed by the government. Mr 
Koizumi argues. 

Mr Koizumi's contention has 
less to do with championing 
free market forces than with 
concern over Japan's future 
finances. “If the government 
continues to do what private 
businesses can do just as well, 
the size of the administration 
will continue to swell. People 
need to realise that in order to 
avoid having to continuously 
raise taxes, it is crucial to 
reduce the functions of the 
government’s bloated adminis- 
tration." 


U nless measures are 
taken to reduce gov- 
ernment functions, 
"no matter how much taxes 
are raised, it will be like a drop 
in a bucket that has a hole in 
it.” he warns. 

Mr Koizumi's campaign to 
privatise the postal ministry as 
a first step towards genuine 
administrative reform is an 
unusually bold act in a country 
where politicians have long 
been expected to leave policy 
up to the mandarins in Kasu- 
migasefci Japan's Whitehall. 

But a third generation politi- 
cian who has served twice as 
minister of welfare. Mr 


ADVERTISEMENT 


Koizumi is used to contro- 
versy. Two years ago he 
became the man whom bureau- 
crats love to hate when on the 
very day he was appointed 
postal minister he broke a 
Kasumigaseki taboo by speak- 
ing out against a key policy of 
his bureaucrats. 

His latest mission also 
appears so far to have won him 
more enemies than friends. 

As in the UK where efforts 
to privatise the post office were 
recently thwarted by the resis- 
tance of several politicians, Mr 
Koizumi's idea of privatising 
many of the functions of 
Japan's postal ministry feces 
opposition not only from 
bureaucrats but from every 
political party, including his 
own Liberal Democrats. Nei- 
ther is it particularly popular 
among the general public. 

“Most people still think it is 
not necessary to take such a 
drastic step,” he concedes. Pew 
politicians, not to mention the 
mass media or the general pub- 
lic, are as exercised as Mr 
Koizumi about the need to 
adopt radical measures in 
order to tackle the financial 
squeeze on the public purse 
that is bound to come. 

But politicians are also 


afraid of the consequences of 
speaking out. The postal 
unions are a formidable force 
in Japanese elections because 
of the size of the post office. 

Direction must therefore 
come from the very top - from 
the prime minister himself, 
who will need to present the 
idea of privatising the post 
office as a cabinet policy. If 
that can be done. Mr Koizumi 
is sure there are many politi- 
cians who will be willing to 
follow the lead. 

He does not expect such lead- 
ership to come from Mr Tomi- 
ichi Murayama. prime minis- 
ter. whose Social Democratic 
party would be unlikely to risk 
alienating the postal unions. 

He believes Mr Murayama 
will do a reasonable job in car- 
rying out some aspects of 
administrative reform and 
deregulation. But the reform of 
a few state-controlled organisa- 
tions does not go to the heart 
of the problem. 

Politicians and the public 
will realise what needs to be 
done and be willing to act only 
when the financial situation of 
the government becomes more 
desperate. “Until then." Mr 
Koizumi says, “I will have to 
proceed with patience." 


South Africa will invest substantially 
more in infrastructural development 

Warren Clew' low. Chairman of Barlow Limited, speaks to John Spira. 

Business Editor o f a leading Johannesburg newspaper. 


Spiral Last year Barlows went through J major restructur- 
ing/ unbundling evet-ci.se. What was [he rulkmale? 

Clewtow: Four year. of (lai earnings wen cause fur i-incem and 
J huld dcciKiun hjd Iv i ol.cn Dunne the r u ' J - M years. the 
group hjd ?n-wii in a 1 ilcntl manner, il via- ihe right way in gu fur 
those linn.-- However. n->w that we jre entering j new era >n South 
Africa's development. n was logical m.ii we .hould reposition lor 
l he I'tMIk. 

Accordingly, The group was >pfn imu separate mime- — C»» 
Smith with ii> consumer unviilatcd iniere-K; Perinea with it* In- 
lech clecironis- and engineering inieresl'-: Fund Mines with il-. 
mainly coal .Jminrurcd mien.-. is. and (he Ration- companies, 
which are linked to inri.i-iruciunil expenditure 
Barlow* v-un now grow and dciclup vertically instead of laterally 
This nuMjisueun n»w adopt j policy id i-ipundine rxisiitig Hum- 
ness an,] of acquiring rcl-iied businesses iheiciiier. Both, m last, 
hare happened 

Spira; How does Kurinwv' new focus liiuefarl with Suulh 
Africa's new era.’ 

Cfewtow: Our I<ku* on inlrjslmciurjf Jewfi'piiw-nl positrons 
Bari loss n> he a mean mu l ul player in Hie remnsmi,in.n prvh.es s 
un which Suuih Ainu ha- embarfeJ [■> meet basis needs deiel- 
iip (sir hamuii is.-soim.es .tiid huihJ our econoim 
Virtually all ihc ,'.iinpjiiie. ore associated in one w.iy mi .moihei. 
with ciwl enjinieennc and ihc huifdinc and son»lnKiu-ii industry 
This. »>1 course, hjs been pin ol our husine-s purpose lor almost 
7ll years. We hj'c j wealth of knowledge ahuul our markets and 
wide e\peneih.v in them 

What makes il an evening pnwfvci Ihal it i- one area which 
should .how rapid grow 111 .« ihc colours Seyms in nuest suh-lan- 
ttally nwre in miriMnieiur.il deielopmcnt. particularly ihe prr-w- 
•.leei til odeiju.iic housing and the upgrading ■•( disadvantaged 
communities 

Spira: How large is Barlows now? 

Clewlo**: We employ some 3 ti.t»w pe»ple -pwad across i.ln 
cnmpantes with Mai Js-cis ,.[ jt«iul R7 billion, a lunmwr well in 
csv ,-ss „i K 1 1 billion and Used pruiitsol RJV« million in The year 
JUM ended. 

Out Iradmg interest, uic me cm rais'd mainly in '•..jiliem \lnca. 
hut we also have some in ip> -riant investments m ilie L'K. mainland 
tuti ipe and the L"> 

Spira: IVhut do ywi regard as Barlows' sm-ngllb.? 

I lew low: Management i. simnj llexiblc and has g.*«! new ultras 
as well as Ihe ahiliis i<< adapt quickly to changing circuni>ianees 
and mark ci- 
In addition 

- Our companies aa- uu.liy financed and (lave «irunj pri duels 
and mart. ci -hares They are .ill leaders m iheir areas ■>! 
business .inrt they hoe Tin- res. hiis e- and loci hues in sustain 
ihal leadership 

* We have maintained a slrnng a.-sociatmn wilh our customers 
over long pen- ids and have 'cry close ailutnes wiih our 
principal - 

* pin- croup i. n--is nioie •vnereiMn. ills- c-unpaiiiCs cun J.irye 
slrrm-JiT [, nk- « nft ■ me -in- -r her and heip s-as h cWier if needs he 

“ We arc- vun«en Jlivcly financed and have J silling ha lane c 
dieel Tills plates us in a pirsiu--u lo evpand the exi-aing 
business urfhorrr any -li.ii« rlnl -«l !•> acquire related 

htLsttiecj.-'. 

’ Most cumpamcs in flic gn-up arc ji ihc low c-mj ul iheir cvtle 
t*.vausi* they have hw« .-jvfaimg »ii rtvcs-ion lor .n long. As 
trading conditions impiovc. which Ihev are now -how mg sign- 
ul duing. lltev mil glow quickly. 

* Shareholder ■ like <«« callure "I li.iung j *lftr ng. trthesiu- 
hoard which i- in mni. mill and back - nianaeeuk-ni. i believe 
ihcv new Barlows i- .u, m csimcui wonh holding user lime 

Spira: Uhal is Barlows' rtrcenlrulisaliun philosophy? 

ClewluH : lire gtutrp’- ii/.rir.icrlliciii siin,U»rc. which i- bulk 
-around a small c-.-nir.il learn rvspuisilile t-u overall polity foivvaiJ 
planning, scnioroeuniu j|i| i-inlnienl- ailJ s»I-.*nh. i* "e[| cun- 
tal io ckvcmr.ihss-d decr-ii-n inikine hui J cmpbjM s.. »uh udii 
central linaivcial coiurul- 

f.hir cs-mpann-s undeis'.unl Un ‘ Ivarl' I'liI the e»nirol o| gmnp 


riuaneec and deci .inns as id pnonbes m the use t-f available funds 
lor capital evpcndiiure. acquisitions or other purposes are very 
much our rt-iptatsihiliiv ul ihe ccnirc- 

li is a system ihal has worked well for us over ihc years and now 
that ihe group will have a more pronounced cyclical factor in iL 
we must be conservatively geared against undue flucuulions in 
bu .mes> cycles 

Spira: W hai do ynu have In mind in tertro of fkirure ocquisi- 
U'ons? 

Clew low: Obviously we will look lor i merry.-, itai ore compatible 
with our nature of bu .nicM. bi-th /ocallv and abnud. One of these 
has been our recent appointment as CaicrpilUr .sales and service 
dealer in Angola. Malawi. Mozambique and Zambia. We have 
also acquired the TOSA steel lube-making and trading division of 
Dorfiyl which sirengiheii-. >>ur markel share and enhances our 
e»pon pi Men l ml. 

We will, h-iwever. alvi he l-soking al grawooLs develop rtwnrs ihal 
will expand evisimg ectmpanii.-s mio new lemtory 

Spira: Du you plan lo hrmiden your eurrenl acrivTlies in 
Africa? 

I'lewlow : Barlows has long had go-.'d n-presenutioit in Lssuniries 
such a- Zinibahwc. B"i -wanj. Namibia and Swaziland It is par- 
iiculurly well placed to play a rule in the uifruMruviural develop- 
ment ami economic giowlh r.i neighbounng cmintnes. We have 
the c-vpc-rieiiic-. we know Africa and. perhaps more imponamly. 
we life dealing in Africa 

The development oi southern Africa can only come Imm a 
dyuanih South Africa, .supported hv Europe and th: US Jusi as 
Japan was the driving fotcc for the development of the Far East in 
the IdMK. mi ri»» ihe development of southern Afnca will tv a 
South AIncaii-driven success And Barlows will tv in there play- 
ing a i ole. 

The new icminm.-, in which we have the Caterpillar dealership are 
a lira step in ihis dire-. lion. We uKo have a small trading opem- 
ijpii in Kenya mid a number ul interesting prospects are being 
examined there suid elsewhere. 

Spira: Does, this mnin Barlows- will be competing internation- 
ally nn a far greater scale? 

ITewTiiw: Yes. And ihi - 1 « why il is so important that we are a lean 
and efficient company wirhouf fnlfs but urlh stable leadership. 

If we can’t he compeiiiivc from South Africa into coumriex jux 
over the honk-t. then there is sijuivihine radically wrong with us 
and we don » deserve ihe business. However. I ifcin'i hflieve ihji 
will tv ihe vase tvcuusc a Nimc jnnbute of all our businesses is 
that they can become world players. One group company is 
already trading in oti cininincx and others are making good 

progress 

Now that there is :■ holier political climate and outlook for eco- 
nomic go-wih at linme. the group can only flourish. For example, 
when I !»- *k al ihv hoid Jiip and obstacles wuh which black 
e mpluy cc- in our group land black busine ss generally t hod h- con- 
tend. l am vonviiKC-J ihat with the new opportunities now opening 
up. wc wtii fv sijHgeftxf at the progress vve are going co w in rite 
dev eW.-pn Kill -.-I nur people — and hence in our ability to compete 
against anyx-uc 

Spin: Barlows is welt known Tor its suppon of small badness, 
for education initialises uod for human resau ree develop menu 
Will (his n minuet 

Clew low: Oi cvuiw: However, jx the c«tnif> changes, cenoin 
priunrics ih.n prc» wusly c\ isi«J u ill change — jnd ttc are tidjpf- 
ing accordingly 

Training is dearly m' Utah* miporiance and we ure really concen- 
iruhnp on dcvcliipinp tiur funpk- — for their hmelii as well, of 
course, as fur ours. The better qualified our people are. the mure 
conifxHiiivv* anJ sucics'l'ul we shall be. 

Bartow-, in its nc« hum has a Invarr pcnvmagc of unikillvd work- 
eo. than heft -re hetaii*- uf Ihe nature of our particular industries 
hut hi- >hall cimunuei-ureiloiu. acrors all categories 

Spira: Whul about munaRcmvol devekipmcnl? 

t-'lenJuu; • hir inanuei'iwm profile is young in years but remark- 
ably Avil-vli* hik-J ill evpenence. especially after having come 
ilirouy'h tin. pjM lew dillivuli years of recession. 



Warren Clew low 

At the highest level our management team is nca yet representa- 
tive of the country 's population. But we arc working towards that 
coal ui quickly as we can. fyiriuws will give new managers an 
op pen unity lo grow and lo move around ihe group iixcll 
Exposure to our fureiun know-bow partners will be especially 
encouraged. 

All in all. 1 think there i> a wealth of talent in every sphere and 1 
am determined that u be dcvelufvd. 

Spira: How do the overseas interests, under (he umbreDu of 
Britain's J Bibby & Sons, fit into the group? 

Clew-low; Bibby has- been refoctoed in almost exactly the some 
way that Barlows has been streamlined. After all. n is illogical fur 
Barlows, whether in South Africa or elsewhere, to have imen-si* 
Ihal don't fit. 

Bibby has been through on era of consol idai ion after having k- 
digest a dn lieu 1 1 acquisition and refinancing, it is now in a much 
tx-ncr position to take advantage of any improvements in the 
European economy, particularly in Spain and Portugal, where we 
have the -ole Caterpillar dealership. 

The Hysier dealerships in the Materials Handling division are well 
placed in then US and European rturlcis and arc already benefil- 
ing Horn the upturn in business activity, particularly m the US. 
The Industrial division, with ils interests in science pruducu and 
paper, j> aJ-o weJJ plived in ils niche nurkeis. 

One of Barlow s' greatest pluses rv its strong overseas base. Svune 
of the operations have been held since Ihe IfSOs. which means we 
don't have a Deed iu establish ourselves outside Stvih Afnca. sim- 
ply because we did so many years ago. 

Spira: What is your vision for Barlows? 

Clew tow: Working very much in our favour is that Barlows hu> 
already shown il-elf to he a company with a chair mission, ft pos- 
sessis'lsith tbe vision jnd the rewO ve to develop siraiegiev which 
suit the limes and pcsivule a base lor future growth, 
i hope we cun maintain this clarity of thinking as u-e continue to 
progress and deliver realistic perfumunce in hue with our pMs-o- 
nai in the years ahead. I din confident that our culture is right for 
ills' luiurc 

I would like to -ee alt our companies maintaining iheir pre-emi- 
nence in ihe industries in which they operate hv sustaining and 
developing their strong ciisiomer links, hccausc all of those indus- 
tries will have grown tremendously. 

I u mild hope. tiio. that nur huMitcsrCa and -our trade and influence 
in neighbouring African Loun tries will be weR and liuly esiab- 
li'hcd to mutual benefit and that the beach- heals we have for 
expansion, e specially in Europe, “ill Jtow c«xl dcvelopmetit 
akriig the lines we amk-ipaie. 

Moq imptirtunLh. 1 would like to see us as a company which, 
fvcausc iif Us iwiunincd manaccmcnl. logelhcr with its JnvnJ and 
skilled employees, ils high levels of integrity and responsible cor- 
porate behaviour, guid reputation and success built on perfor- 
mance, cnniuiues to ynntii ihc K*y in all posiutuis — people who 
want to belong to Barlows and who want to make a contribution 
to the progress and wellbeing ot the company and of our country. 


■ BA BLOW RAND LIMITED 
M P.0. Bos 782J48 SANDT0N 2146 
Tel No. (Johannesburg) SUi-91 1 1 
/ Fax No. fJohannesburet 802-78 J 5 


■v'-V"* • • " ; 





6 


FINANCIAL TIMES TUESDAY NOVEMBER,- 15 1994 


NEWS: WORLD TRADE 


CONTRACTS AND VENTURES 

European steel 
plant for Japan 

Kobe Steel, one of Japan's leading integrated steelmakers, has 
set up its first European production facility in the Nether- 
lands. The new facility in the De Beitel industrial park will be 
Europe's largest producer of material for welding stainless 
steel, and is expected to be completed in May 1995. with 
commercial production starting in October next year. 

The new facility will enable Kobe to avoid the impact of the 
yen's rapid appreciation, high delivery costs and import 
duties. Kobe plans to supply Europe and the US from its new 
facility. By 2000. it hopes to expand product lines to become a 
comprehensive producer of welding materials to supply the 
shipbuilding, construction and machinery industries. The 
European market for advanced welding materials is expected 
to grow to 1,400 tonnes by 2000 from an estimated 1.000 tonnes 
this year. Kobe Steel has a 40 per cent share of the Japanese 
market for welding materials. Michiyo Nakamoio. Tokyo 

Tianjin seals $lbn US deals 

Mr Zhang Lichang, mayor of Tianjin, China's third largest 
city, signed a clutch of agreements or letters of intent during a 
recent trip to the US. garnering a total of nearly Slbn in 
planned investments. Motorola has agreed to invest 8360m to 
build its second manufacturing facility in the city, and Gen- 
eral Electric plans a 8246m expansion which would add four 
production lines to produce air conditioning units, refrigera- 
tors. washing machines and microwaves. 

Competition for foreign investment between China's prov- 
inces and cities has become increasingly intense. With its 
population of 9.2m. Tianjin is stressing its huge market, 
skilled workforce and “stable society and fine public order". 
However a survey of foreign investors said laws and regula- 
tions were ignored, intellectual property protection was inade- 
quate, and its bureaucrats are incompetent, especially at the 
lower levels. Nancy Dunne. Washington 

■ Marubeni Corporation of Japan is to set up a joint venture 
with other foreign companies and the provincial electric power 
bureau to build a 132MW coal power plant in China's Guang- 
dong province. The venture will invest about $L.3bn to build 
the plant for completion by 2000. Reuter. Tokyo 

■ The London-based al-Hayat daily newspaper said Saudi 
Consolidated Electric Company-East (SCECO-East) plans to 
build a 2.400 MW plant at a cost of S2bn in the kingdom’s 
oil-producing eastern province. Reuter, Manama 

■ General Electric of the US has won a 8250m contract to 
supply power-generation equipment to Malaysia's national 
electricity company Tenaga National. GE will install two 
500MW steam turbine generators and auxiliary equipment at a 
plant in Selangor state. The first generator is to begin operat- 
ing in early 1998. AFX. Kuala Lumpur 

■ Cameco. the big Canadian uranium producer, and a group 
of international institutions will invest S34Qm in a new open 
pit gold mine in the former Soviet republic of Kyrgystan. 
Capacity will eventually be 500.000 ounces a year. Cameco is 
putting up 390m. a group of international banks led by Chase 
Manhattan Sl20m and the European Bank for Reconstruction 
S130m. Production starts in 1997 and reserves are sufficient for 
an 11-year mine life. Robert Gibbens, Montreal 

■ Swedish telecommunication group Ericsson has signed a 
SKr€12m (S84£m) contract to deliver mobile phone equipment 
to Telecom Australia. Reuter. Stockholm 


Japanese group makes early foray into Asian semiconductor plant investment 


Mitsubishi in T aiwan chip venture 


By Michiyo Nakamoto in Tokyo 

Mitsubishi Electric yesterday said it 
would invest in a joint venture semi- 
conductor facility in Taiwan to produce 
advanced memory chips. 

This will be one of the first big invest- 
ments by a Japanese semiconductor 
maker in an Asian manufacturing facil- 
ity outside Japan. 

Mitsubishi is to co-operate with Umax 
Data Systems, the parent company of 
Taiwan's largest printed circuit board 
maker, and Kanematsu. a Japanese 
trading company. The Taiwanese stake 
in the joint venture will be about 60 per 
cent, with Mitsubishi taking 15 per 
cent. Kanematsu 16 per cent and Japa- 
nese venture capital funds the remain- 
der. 


Mitsubishi's move len^-ts growing 
competition in the memory chip market 
to increase capacity in order to meet 
forecast demand. It also consolidates 
Taiwan's status as une of Asia's leading 
high-teclinology manufacturing bases. 

The joint venture facility will be in 
an industrial park north of Taipei, and 
will start production of Ifimegabit 
dynamic random access memory chips 
next autumn. 

Mitsubishi'* investment decision was 
based on Taiwan's increasing impor- 
tance as a manufacturing base for com- 
puters. the main users of memory 
chips. Taiwan prubably makes about 
one-third »1 the world's PCs. a Mitsubi- 
shi spokesman said. 

Taiwan's comparatively well devel- 
oped infrastructure and the availability 


of gas, water and electricity' were also a 
factor, Mitsubishi sail 

A third element was the enthusiasm 
of the Taiwanese government which is 
keen to develop an indigenous s«mnr>n - 
ductor industry. Although Taiwan is a 
big manufacturing base for computers, 
it does not have sufficient semiconduc- 
tor manufacturing capacity to meet 
computer industry' demand. At the 
same time, a large part of its growing 
trade deficit with Japan has been in 
electronic components, such as semi- 
conductors. 

The joint venture in Taiwan will 
enable Mitsubishi to share the cost of 
setting up a semiconductor manufactur- 
ing facility. Although the total Invest- 
ment in the facility was not revealed, 
building a semiconductor plant was not 


likely to cost less than YSObn ($5 12m), a 
Mitsubishi spokesman said. 

The project will also give Mitsubishi 
a valuable overseas numufSaetartag base 
for memories, which are- expected to 
become the dominant product, in the 
market from around 1995. .lie company 
has plans to expand semiconductor 
manufacturing at its facility in Japan 
but its overseas operations are seen to 
have lagged behind those of other lead- 
ing Japanese semiconductor makers. 

Mitsubishi’s investment follows 
jmfiiinwiTnpnK by NEC, Hitachi and 
Toshiba, of increased investments in 
memory chip production. Japanese chip 
makers believe market demand wiO 
r-rtntinnp to be strong, particularly with 
the advent of multimedia technologies 
which require a lot of memory capacity. 


Japan under pressure on two fronts 

William Dawkins and Michiyo Nakamoto on talks with the US and the EU 

Pi 


I oLitely disguised anguish 
may be present beneath 
the smiles of Japan's 
senior politicians as they wel- 
come their latest batch of 
guests to trade talks in Tokyo 
this week. 

Delegations from Japan's 
two biggest trade partners, the 
US and the European Union, 
will arrive in Tokyo to obtain 
fresh promises that Japan real- 
ise its much vaunted plans to 
reduce the more than 10,000 
regulations which protect and 
constrain an estimated 40 per 
cent of industrial activity. 

Trade tactics employed by 
Washington and Brussels over 
Japan have converged in sub- 
stance as well as in timing. 
The US will take a more co-op- 
erative line with Japan, 
because it is tired of being 
accused of bullying, while the 
European Commission will 
take a tougher line because it 
is tired of being accused of fall- 
ing to get results. 

Washington has turned 
away, at least for the moment, 
from its former strategy of 
pushing for import targets and 
promises to be less confronta- 


tional. though do less demand 
mg. 

Brussels will, for the first 
time in several years, demand 
tangible progress. The message 
is that there is a limit to the 
EU's patient trade diplomacy 
with Japan, until now limited 
to polite statistical studies of 
foreign shares in each others' 
markets. 

The commission has a sec- 
ond objective Sir Leon Brittan. 
Commissioner responsible for 
external economic affairs, 
wants to return home with a 
promise that European compa- 
nies will not be cut out of Japa- 
nese trade deals with the l : S 
Some member states are 
uneasy that well mannered 
Europe wins none of the big 
trade prizes achieved by l ; S 
table-thumping- Motorola's 
access to the mobile telephone 
market, won early this year, 
and US dominance of Japanese 
defence procurement are 
pointed to as examples. 

Pressure is building up from 
European suppliers, such as 
France's Dassault Aviation, 
which wants the airforce to 
buy its Mystere Falcon busi- 


Japan’s trade with the EU and US 



Imports, Son 
250 

200 



☆ 


☆ 


☆ 


☆ 


☆ 

SWEDEN SAYS & 


☆ 


YES 




☆ 


☆ 


TO EUROPE 


On Sunday 1 3 November the Swedish people voted yes by majority to accept their 
Government’s application for membership of the European Union. 

On I January 1995 Sweden will finally become a member. 

We all welcome the outcome of the referendum. Our businesses have been part of 
Europe for a long time, working in the United Kingdom for closer links 

between our two countries. 

SWEDEN AND THE UK - TRADING PARTNERS IN EUROPE 


ERICSSON $ 

S WE OB AN K 



Skandia 



STORA 


.4 


*!•) Skandinaviska Enskilda Banken MOas Copco 


S4S 


Deloitte Touche 
Tohmatsu 
_ In ternation al 
A 


=U Ernst & Young 


SsKSEdlsim 



Reynolds Porter Chamberlain 


Patrons of 


Mr** 


sVk'tMSIl i IIAMllH* (IP uiMMtlll't 

I OK I Ml l Nirtli- MNI.IHVU 


WORKING FOR CLOSER TRADE LINKS 


73 Wclbcck Sireoi 
London W I M 7HA 
Tel: 0171-186 4545 
Fax: 0171-935 5487 


1983 84 85 

Source - Mn'Slry of Finance 

ness jet for transporting offi- 
cers Another is Britain's GEC- 
Marconi, hoping that Japan's 
defence agency will be allowed 
the political freedom to carry 
out its wish to buy UK instead 
of US minesweepirig sonar. 

The US delegation today 
begins two days of talks, in 
which It will present Japan 
with a list of deregulation 
steps across 10 industries. Sir 
Leon and two Commissioner 
colleagues meet ministers on 
Saturday with a similar shop- 
ping list covering eight sectors. 

Examples of long standing 
demands, shared by the US 
and EU, include: 

• An end to the mass of plan- 
ning and operating restrictions 
that impede the growth of 
supermarkets, a move which 
would spell death for the 1.5m 
small, family-run businesses 
that dominate Japanese high 
streets, but high profits for the 
budding discount sector. 

• Lay open the maze of 
restrictions that ensure that 
foreign investment managers 


handle a mere 0.2 per cent of 
Japan s YlTQjJOObn <£l.Q75bn) 
pension funds. 

• Streamline the arcane car 
inspection system, which 
requires each new vehicle to be 
checked twice, by two different 
government agencies, before it 
reaches the road. This ensures 
most car makers can only 
make a profit if they sell high 
volumes. 

• Review the statutes of Nip- 
pon Telegraph and Telephone, 
the domestic telecommunica- 
tions monopoly, to make it 
cheaper for private sector oper- 
ators to plug international or 
long distance calls into NTT’s 
local networks. 

• Ensure that Japanese gov- 
ernment policies for more open 
public procurement are carried 
out. 

The signs are that the Japa- 
nese government and the 
behind-the-scenes power of big 
business also impede foreign 
competition. 

Retailing is a good example 
because it touches everyday 


lives. Japan’s large scale retail 
law, governing opening hours 
and planning consent, has 
been revised twice in the past 
two years to make life easier 
for new shops. Since the sec- 
ond revision last May, the 
number of supermarkets to 
open in Japan has quadrupled 
to about 80 a month as a 
result Yet stiU less than 10 per 
cent of supermarket goods are 
foreign. 

Meanwhile. Renter reports 
that Japanese officials yester- 
day said they were sticking to 
their guns in their dispute with 
the US over access to Tokyo’s 
car and car parts market, 
despite an agreement to 
re-open stalled talks on the 
issue. 

Tt’s fine to re-open the talks, 
but Japan has not given up its 
basic conditions (for re-open- 
ing),** Mr Hideaki Kumano, 
vice-minister for international 
trade and industry, said in 
Tokyo. He said Japan was 
waiting for the US to move to 
restart the talks, adding that 
Japan had outlined three con- 
ditions for doing so. 

Last Thursday Mr Mickey 
Kantor, US trade representa- 
tive. said be and Japanese 
trade minister Ryu taro Hashi- 
moto had agreed to re-open 
vehicle sector talks, but set no 
date. The talks have been stal- 
led since the two sides foiled to 
reach agreement at the end of 
September. 

Yesterday Mr Kantor warned 
Japan that he intended to pry 
open its automotive market, 
even if that meant resorting to 
unilateral trade measures. 

“We are going to make sure 
we make progress one way or 
another," Mr Kantor, in Jak- 
arta for broader Asian-Pacific 
trade talks, said. 

President Bill Clinton, also 
attending the Asian-Pacific 
trade talks in Indonesia, told 
prime minister Tomiichi 
Murayama yesterday that 
more progress on trade - espe- 
cially cars and car parts - was 
needed, a US official said. 


big UK 

aircraft 

order 


By Janies Buxton, 

Scottish Correspondent . . . 

Jetstream - Aircraft. . the 
troubled turbo-prop subsidiary 
of British Aerospace^ has 
signed a contract to sefl up to: 
60 of ito Jetstream 41 com- 
muter aircraft The contract, 
which could be worth as much 
as S420m,ls with Trans States 
AirtLnes of the US. 

The order will boost sub- 
stantially the" workload - at 
Jetstream’s sole plant at Prest- 
wick in Ayrshire, Scotland; It 

will also strengthen - Jet- 
stream's hand re negotiations 

with other European mairafac- 
turers on a strategic affiance: 
of turbo-prop aircraft produc- 
ers. - ? • 

Trans States has placed form 
orders for .25 Jetstream 41s, 
with an option for an addi- 
tional 35. The first aircraft 
will be delivered to Trans 
States in St Louis, Missouri, 
next February, with the rest . 
delivered during 1995 and 
1996. 

Trans States is a regional 
airline which has code-sharing 
alliances with TWA, USAfay 
Northwest and Alaska. It 
already operates the 19-seat 
Jetstream 31 aircraft 

Mir Hulas Kunodia, president 
of Trans States, said the 30- 
seater aircraft was selected for 
its ability “to contribute to the 
bottom line'’. It had the lowest 
operating cost of any SOseat 
aircraft available. 

Large aircraft orders are 
particularly prized among tur- 
bo-prop aircraft producers, 
who have large overcapacity 
and a dire shortage of con- 
tracts. In October 1993 Jets- 
tream announced a cut of 630 
in its workforce of 2,500 at 
Prestwick, it made an operat- 
ing loss of £120m ($i96-8m) in 
1993 and British Aerospace 
made a £2 50m provision to 
cover turbo-prop leasing liabil- . 
ities. 

Jetstream has been in talks 
with the Fran co-Italian ATE 
consortium, a joint venture 
between Aerospatiale and Ale- 
nia, on a proposed strategic 
alliance on regional aircraft of 
30 to 80 seats. Although there 
has been speculation in the 
industry that agreement was 
near, British Aeropsace yester- 
day refused to confirm this, 
and said it was also in talks 
with, other companies. 

The Trans States order will 
strengthen Jetstream's hand 
in any negotiations. It has 
been suggested in the tndnstry 
press that under an agreement 
with ATR, Jetstream would 
continue to make the Jet- 
stream 41, but would eventu- 
ally drop the less successful 
70-seat Jetstream 61, a direct 
competitor with the Franco- 
Italian ATR 72. It would 
become involved in developing 
and manufacturing the 84-seat 
ATR 82, which ATR wants to 
launch early in 1995. 


INTERNATIONAL ECONOMIC INDICATORS: BALANCE OF PAYMENTS 


Trade figures are given in WUons of European curency imts (EnQ. The Ecu exchange rate shows the number pr national currency unto per Ecu. The nonfat effective exctuxwo rate 
IS an index with 1985=100. 


■ UNITED STATES 


■ JAPAN 


■ GERMANY 




MM 

Canal* 

Em 

W«M 



Ml 

MtMl 

— J»WB» 

nrraa 


Emm 

Wwr 

■faa. 

raw 

raw 

1985 

279.8 

-174.2 

-164.5 

0.7623 

100.0 

1966 

231.0 

-140.6 

-153.7 

0.9836 

B02 

1987 

220 2 

-131.8 

-144.8 

1.1541 

70.3 

1968 

272.5 

-100.2 

-108.3 

1.1833 

66.0 

1989 

330-2 

-99.3 

-93.3 

1.1017 

69.4 

1990 

309.0 

-79.3 

-72.0 

1 .2745 

65.1 

1991 

340.5 

-535 

-5.6 

12391 

64 S 

1992 

345.9 

-65.2 

-52.4 

12957 

62.9 

1993 

397 3 

-98.7 

-88.B 

1.1705 

65.6 

4 th qtr.1993 

106.9 

-25.0 

-26.9 

1.1388 

08.4 

1st qtr.1994 

106.9 

-28.9 

-28.7 

1.1244 

668 

2nd qtr.1994 

107.7 

-32.7 

-31.9 

1.1605 

65.3 

3rd qtr.1994 




1.2232 

62.8 

October 1993 

34.5 

-9.3 

aa 

1.1597 

65.5 

November 

35.5 

-8.8 

n.a. 

1.1282 

66.6 

December 

36.9 

-89 

n.a. 

1.1287 

67.0 

January 1994 

35.2 

-9.7 

na 

1.1139 

67.5 

February 

34.1 

-10.8 

n.a. 

1.1184 

66.7 

March 

37.5 

-8.4 

n.a. 

1.1410 

66.1 

April 

36.1 

-106 

njx 

1.1385 

66.0 

May 

35.4 

-11 1 

n.a 

1.1622 

65.3 

June 

36.3 

-11.0 

n.a 

1.1808 

6J.0 

July 

33.6 

-12.2 

aa 

1.2187 

83.0 

August 

36.8 

-10.8 

aa. 

1.2196 

63.1 

September 



n.e. 

1.2312 

62.3 


■ FRANCE 






Vlfa 

0— 

Ear 

Btaftrr 



Mr 

mart 

"fa 

iirlrac i 


bean* 

MMner 

ONmc* 

rat* 

rW» 

1985 

133.4 

-3.7 

-02 

6.7942 

100.0 

1986 

1 27.1 

0.0 

3.0 

6.7946 

102.6 

1987 

128.3 

-4.6 

-3.7 

6.9265 

103.0 

1988 

141.9 

-3.9 

-3.4 

7.0354 

100.8 

1989 

162.9 

-6.3 

-3.6 

7.0169 

99.8 

1990 

170.1 

-7.2 

-7.2 

6.9202 

104.8 

1991 

175 4 

-4.2 

-4.9 

6.9643 

102.7 

1992 

182.6 

4.6 

2.9 

6.8420 

106.0 

1993 

179.6 

13.5 

8.9 

6.6261 

108.3 

4th qtr.1993 

46.1 

4.4 

3.0 

6 9431 

107.3 

1st qtr.1994 

46.5 

2.4 

3.4 

6 5681 

108.0 

2nd qtr.1994 

48.8 

3.2 

O.S 

6.5967 

108.0 

3rd qtr.1994 




8.5362 

110.0 

October 1993 

15.0 

1-25 

0.88 

6.6631 

106.9 

November 

15.1 

1.14 

0.32 

0.6637 

1088 

December 

16.0 

2.01 

1.84 

6.6025 

106-2 

January 1994 

15.3 

0.26 

2.36 

6.5959 

107.9 

February 

15 2 

0 74 

-0.29 

6.5905 

107.6 

March 

16.0 

1.35 

1.36 

6.5782 

108.3 

Apr* 

15.8 

1.19 

0 42 

6.6240 

107.1 

M3y 

16.6 

1.16 

0.17 

6.5972 

1075 

June 

16.2 

0.88 

-0.06 

6.5688 

108.8 

July 

160 

0.74 

1.17 

6.5508 

109.7 

August 

16 8 

1 11 

-0 04 

6.5347 

110J2 

September 




0.5233 

110.3 



tow* 

Qm 

Ecu 



trtoi 

ICCOHOt 



fare 

Msm» 

bNaac* 

mt 

nm 

230.8 

76.0 

64.5 

18050 

100.0 

211.1 

06.2 

87.0 

165.11 

124.4 

197.3 

86.1 

75.3 

166.58 

133.2 

219.8 

00.7 

06.7 

151.51 

147.3 

245-3 

70.5 

52.6 

15187 

141.9 

220.0 

50.1 

282 

183.94 

126.0 

247.4 

83.1 

62.9 

166.44 

137.0 

254.8 

101.7 

90.0 

164.05 

142.9 

300.0 

121.0 

111.7 

130.31 

173.8 

75.6 

302 

26.9 

123.20 

1802 

81.1 

32.8 

30.1 

120.95 

182.5 

81.7 

31.6 

29.5 

119.84 

187.1 

804 

30.1 

26.2 

121.14 

189.9 

24.8 

9.8 

85 

124.03 

18W 

252 

9.9 

8.8 

121.86 

181.8 

25.7 

10.6 

9 2 

123.92 

178.5 

27.1 

11.3 

11.2 

124.03 

177.0 

26.9 

11.3 

10.1 

118.77 

1852 

272 

10.2 

8.8 

120.04 

1852 

27.6 

11-3 

10.9 

117.79 

188.8 

26.1 

9.6 

8.6 

120.67 

1882 

28.0 

10.8 

10.0 

121.05 

166.8 

26.8 

11.1 

9.9 

120.00 

19J.5 

26.9 

92 

7.8 

121.86 

158.7 

26.7 

9.8 

as 

121.56 

180.0 

■ ITALY 






HrM 

Corns 

Ecu 

fa. 

fan* 

Mm 

■CCOftHf 

ncAang# 

»■** 

•fa 

raw 

103.7 

-16.0 

-5.4 

1443.0 

100.0 

99.4 

-2-5 

-1.4 

1461.6 

101 A 

100.7 

-7.5 

-2.1 

1494.3 

1012 

108.3 

-8.9 

-8.0 

1536.8 

97.8 

127.8 

-11.3 

-17.0 

15092 

98.8 

133.8 

-9-3 

-18.0 

15232 

100.6 

137.0 

-10.5 

-17.7 

1531.3 

98.9 

137.9 

-8.0 

-200 

1591.5 

95.7 

144.3 

17.9 

9.8 

1836.7 

79.6 

38.9 

6.7 

5.6 

1879.8 

77.0 

37.5 

3.4 

1.1 

1892.B 

76 2 



6.1 

18612 

77.8 




1920.2 

75.6 

13.2 

2.4 

2.2 

1854.9 

782 

12.8 

1.6 

17 

1880.7 

77.0 

12.9 

2.7 

1.7 

1903.8 

76.1 

102 

ai 

-1.0 

1892.5 

762 

12.8 

1.6 

1.3 

1883.9 

76.4 

14.5 

1.7 

as 

1901.9 

75.9 

12.9 

1.4 

1.2 

1850.1 

780 

13.7 

1.6 

1.4 

1852.9 

782 



35 

1880.5 

77.1 


2*2.7 
248 .5 

254.3 
272/5 
3102 

334.4 

327.4 
330.8 
323.1 


332 

53.4 

58.7 
61.6 

65 .4 
51 8 
M2 

16.8 
30.8 


21.7 

40.3 

39.8 

42.9 

52.3 

36.9 
-15.7 
-17.0 
-17.2 


2.2260 

2.1279 

2.0716 

2.0739 

Z0681 

211537 

2.0480 

2.0187 

15337 


100.0 

108.8 

115.3 

114.6 

113.5 

119.1 

117.7 

121.2 

124.6 


82.7 
81.9 

89.8 


8.7 

7.6 

11.3 


-5.3 

-5.9 

-2.7 


1.9181 

1.9370 

1.9276 

1.9088 


124.6 

122.4 

123Jj 

126.0 


27.6 

27.8 

27.3 

26.8 

28.3 
26.8 

29.1 

30.2 

30.6 
29.0 


3.3 
3.1 
3.3 
3.1 
32 
1 2 
4.6 

3.1 
3.8 

2.1 


-2.7 

-0.9 

- 1.6 

- 1.6 

-2.3 

-1.9 

- 0.6 

-2.3 

0.1 

-70 

-3.4 


1.0995 
10182 
1.9308 
1.9415 
1.9397 
19299 
1 9335 
1.9265 
1.8228 
19117 
1.9075 
1.9073 


1262 

124.5 

123.7 
1222 

121.8 
123 2 

122.6 
1234> 
124J 
125.7 
128.3 
126.1 


■ UNITED KINGDOM 


EfaW B4ann Mme 


132.4 

108.3 

112.3 

120.9 

137.0 

142.3 
147.7 

145.9 

158.1 


-5.7 

-14.2 

-16.4 

-32.3 

- 38.7 

-26.3 

-14.7 

-17.8 

-17.0 


3.8 

-1.3 

-7.1 

-25.0 

-33.5 

-28.6 

-11.7 

-13.4 

-13.3 


0.5890 

0.6708 

0.7047 

0.6643 

0.6728 

0.7150 

0.7002 

0.7359 

0.7780 


407 

42.3 

43.0 


-4.2 

-3.9 

-3.1 


- 2.8 

-1.7 

-0.9 


0.7635 

0.7554 

0.7716 

0.7B85 


1904.6 

1928.3 

1928.0 


70.3 
754 

75.3 


13.7 

13.4 

13.7 

14.4 
14.0 
13.9 

14.5 

14.0 

14.4 

14.5 

14.7 


- 1.1 
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- 1.8 
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0.7712 

0.7620 

0.7573 

0.7458 

0.7557 

0.7649 

0.7673 

0.7733 

0.7741 

0.7881 

0.7806 

0.7B67 


Maril8f - £C CQunW ” osrantly changing to a raw system of earyBng trade statatm. Aa trade Bnunw nm JLTZT": 

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& *? ip V Tl * G * fman ** ttafcn imports wtiteh use me C0= method (Incfutfng carriage, instance wid froght charges}. 1 

b ttssff&sgs BiTsssu 



FINANCIAL times 


Tuesday November is 1994 


NEWS: THE AMERICAS 


jRebublica ns look to 1996 presidential election after last week's congressional victory 

Gramm, Specter eye White House 

By George Graham in Washington 


tbe P mump n h anllt week's 
nri? tate f to ho,d ballots in 

wer rtfeSoiS *!f ve *** n crowded 

RfmihSLi days ttlth hopeful 

randidates. as Senator Phil 

sStJfofpJni 95 ! Senator Arlen 
speeter of Pennsylvania formally threw 

their hats into the ring for their party ’s 
presidential nomination. 

a ,s n .o surprise that Mr 
8,1 ®brasu<>ly conservative eco- 
EH®?® 5 ri? feSSOr ‘ should announce that 
5L Wa3 .SS ,, ^ papers fhjs week with the 
Federal Election Commission to put the 
iegai structure in place for a campaign. 

Mr Gramm has made no secret of his 
plans, and dearly wishes to capitalise 
on last week’s election success for 
which, as chairman of the Republican 
senate campaign committee, he can 
claim at least partial credit. 

But Mr Specter’s announcement that 
he is "exploring" a eandidacv is seen as 
a more quixotic venture - and perhaps 
a sign that the Republicans’ prospects 
are not so unclouded as thev might 
appear after last week’s triumph 
which has led many in the party 
to conclude that President Bill Clinton 
is destined to follow the last Democrat 
in the White House as a one-term 
president. 

For a moderate such as Mr Specter to 






i:-V* •••;.'•' ! ." 


Arlen Specter his candidacy suggests 
that he would attempt to poll the 
party back towards the centre 

run. with minimal hopes of winning, 
suggests that the party could have trou- 
ble remaining united after its tilt to the 
right in recent years. 

His candidacy would resemble in 
some respects that of Mr Paul Tsongas 
in the 1992 Democratic primaries - a 
bid to pull his party back towards the 
centre, more than a realistic quest for 
the nomination. 

In his announcement yesterday Mr 
Specter took aim at ’’spoilers" such as 


Phil Gr amm : can claim at least part of 
the credit for the Republican party's 
election success last week 

Mr Pat Robertson, the conservative 
Christian leader, and Mr Pat Buclianan. 
the former Nixon speech writer whose 
maverick candidacy so irked former 
President George Bush in 1992. 

“It is important at the outset to focus 
on the far-right fringe.” Mr Specter 
said. 

A host of other Republican hopefuls 
could enter the lists. Senator Robert 
Dole, the aeid-tongued leader of the new 
Senate majority, said he would make up 


his mind by February 15. At least she 
members of Mr Bush’s cabinet - secre- 
tary of state James Baker, defence sec- 
retary Dick Cheney, labour secretary 
Lynn Martin, housing secretary Jack 
Kemp, vice-president Dan Quayle and 
education secretary Lamar .Alexander - 
are also possible candidates. 

Of these. Mr Kemp started with the 
most public esteem but it is Mr Alexan- 
der who now appears to have the best 
position. 

A former governor of Tennessee, he is 
not widely known but has built a strong 
political network, and is likely to win 
wider support among the 31 Republican 
governors than other candidates more 
rooted in Washington. 

Iowa, which holds party caucuses in 
January of a presidential election year 
to decide who to nominate for the presi- 
dency. counted for little in 1992 because 
Senator Tom Harkin. a candidate for 
the Democratic nominatiou. was widely 
expected to sweep his home state. New 
Hampshire holds the first presidential 
primary in the country. 

Both states have in the past provided 
an important springboard for candi- 
dates to raise their national profiles and 
to attract money for their campaigns in 
the rest of the country. 

In 1996. however. California and New 
York will both bold their primaries 
much earlier in the process, instead of 
waiting to the end. 

Campaign managers believe, there- 
fore. that a serious candidate will need 
a good organisation and at Least S30m 
in hand by January 1996. 


7 


Depleted Democrats 
battle for party’s soul 


By George Graham 

After taking a severe beating 
at the hands of their Republi- 
can opponents in last week's 
elections, the Democrats yes- 
terday started to fight among 
themselves over who should 
control what remains of their 
party. 

Congressman Charlie Rose of 
North Carolina was expected 
to announce yesterday that he 
would challenge Congressman 
Dick Gephardt of Missouri for 
the minority leadership, set- 
ting the scene for a pitched 
battle between the Democrats' 
competing wings. 

If the Democrats had kept a 
majority in the House of Repre- 
sentatives. Mr Rose might well 
have challenged Congressman 
Tom Foley for the speakership. 
But in the Democrats' general 
defeat. Mr Foley lost his own 
bid for re-election in eastern 
Washington state by rhe slim- 
mest of margins. 

As majority leader in the 
outgoing Congress. Mr 
Gephardt ranks second in his 
party to the Speaker. With no 
speaker, the minority party’s 
leader ranks first. 

Mr Rose represents the more 
conservative southern wing of 
the Democratic party, strongly 
supporting tobacco growers - 


the mainstay of his North Car- 
olina district - and playing 
behind-the-scenes politics from 
his current position as chair- 
man of the House administra- 
tion committee. 

Mr Gephardt, meanwhile, 
began as a moderate and was 
one of the founders of the Dem- 
ocratic Leadership Council, the 
centrist group which claims 
President Bill Clinton as one of 

Gephardt faces 
challenge from 
Rose as the 
minority leader 
in House 


its principal members but has 
often despaired of getting him 
to stick to its philosophy. In 
the mid-1980s, however. Mr 
Gephardt moved to the left, 
and ran unsuccessfully for the 
Democratic presidential nomi- 
nation in 1988 as a pro-union 
protectionist. 

Generally recognised as an 
extraordinarily skilful man- 
ager of the Democratic con- 
gressional caucus, Mr 
Gephardt starts the contest 
with a clear edge over Mr Rose. 

Even more tellingly, the elec- 


tion has moved the Democratic 
congressional parly to the left. 
Many old-school southern 
Democrats will not return to 
Washington when the new 
Congress meets in January, 
through either retirement or 
defeat. In Mr Rose's own state 
of North Carolina the Demo- 
crats lost four of the eight 
House seats they had held. 

Of the expected 204 Demo- 
crats in the new House (results 
from some districts are not yet 
final) a clear majority repre- 
sent districts in the northeast 
and midwest. Among the 
remaining southern Demo- 
crats. a much larger proportion 
now represents black and His- 
panic districts. Both groups are 
shifting the party’s cpntre of 
gravity to the left. 

In the Senate, a rather differ- 
ent leadership contest is brew- 
ing. Senator Jim Sasser had 
been expected to succeed Sena- 
tor George Mitchell, the retir- 
ing majority leader, but 
lost his re-election bid in 
Tennessee. 

That leaves Senator Tom 
Daschle of South Dakota, who 
is viewed as having a philoso- 
phy very similar to Mr 
Gephardt’s, to compete against 
Senator Christopher Dodd of 
Connecticut, another of the 
Senate's liberals. 


Peru’s success 
hampers quest 
for debt deal 

Sally Bowen and Stephen Fidler 

on a difficult case for generosity 


A powerful economic 
recovery could well 
hamper the Peruvian 
government's quest for an 
advantageous debt deal with 
its bank creditors. With the 
economy likely to grow at the 
fastest rate in Latin America 
for the second straight year, 
and its foreign exchange 
reserves at a record $6bn 
(£3.6bo). it could be rough con- 
vincing banks that Peru 
deserves generous treatment. 

Recent announcements by 
economy and finance minister 
Mr Jorge Carnet suggest talks 
with leading bank creditors 
may start in mid-December. 1 
Not before time, says Mr 
Carlos Boloda. former economy 
minister and architect of 
Peru’s far-reaching economic 
liberalisation and reform pro- 
gramme. According to Mr 
Boloda. Peru bad made sub- 
stantial advances towards a 
“Brady” debt reduction accord 
in 1992 “when negotiating con- 
ditions were considerably more 
propitious than today”. 

“The time was right, when 
both the debt price and inter- 
national reserves were still 
low,” says Mr Bolofia. “Now 
you can’t go crying to the 
banks, and negotiating will be 
much harder.” Peru’s debt is 
trading in the secondary mar- 
ket at around 56 per cent face 
value, compared with less than 
20 per cent at the end of 1992. 

A deal in 1992 was stymied, 
however, by the still-unex- 
plained sacking of Mr Bolofia 
and a battle over a disputed 
$72m debt to two New York 
hanks - which was formally 
recognised by the Peruvian 
Congress only after 10 months 
of deliberations. 

Ministry advisers are now 
saying they would like to see a 
Brady deal in place some time 
next year. Many bankers think 
this may be difficult, particu- 
larly given presidential elec- 
tions next ApriL 
Two technical obstacles 
must be cleared. The banks 
insist that Peru pay some 
SI. 5m in legal fees they 
incurred in legal actions 
against the government, and 
the government Insists the 
banks withdraw all pending 
lawsuits. 

The main complication wul 
be the huge amounts of inter- 
est arrears owed dating back to 
1984. “Peru is the country with 
the largest ratio of arrears to 
principal; that’s going to 
involve some hard negotia- 
tions.” says Mr Peter West of 
the London-based West Mer- 
chant Bank- According to caf 
eolations by the Institute of 
International Finance, an 
international bank think-tank 
in Washington, using contrac- 
tual interest rates the ratio of 
interest arrears to principal 
will be 142 per cent by the year 
end, and 162 per cent by the 
end of next year. 

Banks have always resisted 
erring generous terms on 
arrears to discourage debtors 
from delaying interest pay- 
ments. The sticking point will 
not be the terms on the 
roughly SS.Sbn of principal - 
that is likely to be fairly rap- 
idly settled, say bankers, at a 
discount of 45 per cent (as in 
Ecuador’s just completed deal) 


or 50 per cent (as in Bulgaria). 
The sticking point will be what 
happens over the more than 
$4.2bn in overdue interest 

Some economists think that 
a generous settlement on inter- 
est is needed, given that Peru’s 
overall debt position remains 
critical despite the breathers 
given under a generous Sep- 
tember 1992 rescheduling deal 
with the Paris Club of creditor 
governments. The country 
owes more than ffflhn, almost 
six times current annual 
export earnings and probably 
not far short of actual GDP. 

Mr Paul Luke of Morgan 
Grenfell in London argues that 
the banks will be forced to 
write off some of Peru’s past 
due interest Without this, he 
argues, it will he impossible to 
finance the debt deal from the 
country’s tax revenues - 
which have proved notoriously 
difficult in the past to increase 
beyond present tow levels of 
around 11 per cent of GDP. 

Mr Roberto Abusada, now an 
adviser in the economy minis- 
try and a former vice-minister, 
agrees. “We’re at the limits of 
our fiscal possibilities and we 
need a highly advantageous 
deal” 

Mr David Atkinson of Stan- 
dard Bank in London believes 
the negotiations will not be 
easy, but thinks banks may 
well worry less about setting 
precedents with a relatively 
generous settlement on inter- 
est arrears. 

Many bankers think that 
Peru’s high reserves should 
allow a buy-back of some of the 
debt for cash - something 
Ecuador could not afford. Fur- 
thermore, a prolonged negotia- 
tion could allow further debt to 
be liquidated through debt-in- 
equity swaps in the govern- 
ment's privatisation pro- 
gramme. 

Peru has raked in large 
amounts of cash from state 
company sell-ofis. The total so 
for exceeds $2.7bn and there 
are important assets, including 
electricity generating compa- 
nies, fishmeal plants, oilfields 
and refineries and the giant 
state-owned, mining and refin- 
ing company Centromin, still 
to go under the hammer. 

Economy ministry officials 
say privatisation has added 
some $2bn to the reserves and 
this cannot, by law, be diverted 
into debt repayments. In addi- 
tion, bank reserve require- 1 
meets mean that 45 per cent of 
all dollar deposits in Peru - | 
about two-thirds of total depos- 
its - are placed in the central | 
bank, hugely swelling the 
reserve totaL 

Peru also has a large deficit 
on current account - around 
Si bn for the first half year 
alone. It is being financed by 
the inflow of long-term capital, 
mainly from privatisations and 
the short-term capital still 
flooding into the high-perfor- 
mance Lima stock market. 

Neither of these sources can 
be counted on to continue for 
more than a year or two. 
Export earnings, though on 
target for a record S4bn this 
year, remain vulnerable to 
fluctuations to raw materials 
prices. Peru’s real capacity to 
service debt has thus changed 
little in 15 years. 





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but also provides information, data services and -education. Today, Tele West offers around 36 
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believe that cable technology, including digital compression, will enable us to provide more 
than ISO channels. Including one for ‘The Graduate' maybe? tci cu/ecr 


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n i-y h-e-vfcon Bunvin Limned fa member «.! Th-? Sec j-inen and Futures Authority Limited, solely Io> the purpose of Section 57 ot the Fmanc-oi Services Act l&Sfi 




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SWISS MADE SINCE 186C 


THE 


DAVID 

THOMAS 


PRIZE 


David Thomas was a Financial Times journalist killed on assignment in 
Kuwait in April 1991. Before joining the FT he had worked for. among 
others, the Trades Union Congress. 

His life was characterised by original and radical thinking coupled 
with a search for new subjects and orthodoxies to challenge. 

In his memory a prize has been established to provide an annual study/ 
travel grant to enable the recipient to take a career break to explore a 
theme in the fields of industrial policy, third world development or the 


environment. 


The theme for the 1995 prize, worth not less than £3.000, is: 
DOES FREE TRADE THREATEN THE ENVIRONMENT? 


Applicants, aged under 35, of any nationality, should submit up to i 000 
words in English on this subject, together with a brief c.v. and a proposal 
outlining how the award would be used to explore this theme further. 

The award winner will be required to write a 1500 to 2000 word 
essay at the end of the study period. The essay will be considered for 
publication in the FT. 


CLOSING DATE JANUARY 6 1995 


Applications to; 

Robin Pauley, Managing Editor 
The Financial Times (L) 
Number One Southwark Bridge 
London SE1 9HL 


Better-than-expected data but price pressures continue to grow 

Figures ease inflation fears 


BT set to 
test full 


By Gillian Tett 
and Philip Coggan 


Retail sales 


The cost of goods leaving UK 
factories rose by less than 
expected last month, easing 
fears that inflation pressures 
will trigger a rise in interest 
rates in the coming weeks 

However, underlying price 
pressures in industry continue 
to grow, suggesting that fresh 
impetus for a rate rise will 
emerge in the months 3 head. 

The Central Statistical Office 
yesterday said that the cost of 
goods produced by UK manu- 
facturers for the home market 
rose by 0.1 per cent in October, 
compared with September, and 
U.3 per cent in the year to Octo- 
ber. 

The figures were flattered by 
a fall in petrol prices. Mea- 
sured without the volatile food, 
drinks, tobacco and fuel sec- 
tors. output prices rose by 0.4 
per cent in the month. 

Nevertheless, the data was 
better than the City had expet- 


voiume. balance 

JO 

/A E»pcc«d 


n/L 



ted and prompted some ana- 
lysts to suggest that further 
rate rises are unlikely this 
month. 

Mr Eddie George, governor 
of the Bank of England, and 
Mr Kenneth Clarke. UK chan- 
cellor. are understood to have 
agreed to leave interest rates 
unchanged at 5.75 per cent 
at their regular monetary 


meeting earlier this month. 

However, expectations of a 
rise in US rates fuelled specula- 
tion that a UK base rate rise 
might be imminent. The US 
Federal Open Markets Commit- 
tee meets in Washington today, 
and is widely expected to raise 
rates by at least (is percent 

It is thought that an addi- 
tional meeting between Mr 
George and Mr Clarke would 
be required ahead of their next 
scheduled meeting on Decem- 
ber 7 for the UK to follow any 
US lead immediately. However, 
most analysts believe that a 
UK interest rate rise is likely 
to be delayed until after the 
Budget on November 29. 

Yesterday’s data painted a 
mixed picture. The price of 
fuels and materials purchased 
by manufacturers rose by a 
seasonally adjusted 0.1 per cent 
in October, compared with Sep- 
tember. the lowest monthly 
rise since January. Over the 
year to October input prices 
rose by 6.9 per cent. 


The subdued rise in. output 
prices indicates that most of 
the annual input price increase 
is still being absorbed by 
industry. But the Treasury 
expects that output prices will 
accelerate next year, and yes- 
terday’s data suggested that 
manufacturers in some sectors, 
such as plastics, are. already 
paci n g input price increases 
onto customers. Measured on a 
three-monthly basis, output 
prices, excluding volatile ele- 
ments. rose by 0.8 per cent in 
the three months to October, 
compared with 0.4 per cent in 
the three months to July. 

However, it remains uncer- 
tain whether retailers will be 
able to pass manufacturers' 
price increases on to consum- 
ers. given the fragile state of 
consumer confidence. 

A Confederation of British 
Industry survey yesterday 
showed that retailers reported 
a dip in ftnnnai sales volumes 
in October, for the first time 
since December 1992. 


on 


By Raymond Snoddy 


Rise in cost of 
raw materials 
forces prices up 


Mixed pictures the cost of materials 


Annual 96 change 
Fuel 


% change 


Crude oil. etc 


Food: home-produced 
Food: imported 
Other home-pnxhtoed 


By Gillian Tett, 
Economics Staff 


A surge in the price of the raw 
materials used in the plastics 
sector forced plastics manufac- 
turers to raise their prices last 
monih. the Central Statistical 
Office said yesterday. 

Meanwhile, the chemicals 
and pulp, paper and publishing 
sectors also reported signifi- 
cant rises in the cost of their 
raw materials. 

However, the cost of coffee 
and metals fell back last 
month, following the surge in 
these commodity prices earlier 
this year. 

Overall, the CSO said chat 
output prices for all manufac- 
turing sectors rose by 0.1 per 
cent in October, compared with 
September, and by 2.3 per cent 
in the year to October. 

This yearly rise was consid- 


erably luwer than the growth 
in raw material costs, suggest- 
ing ihai many manufacturers 
are still being forced to absorb 
the input price increases them- 
selves. 

input prices rose by 6.9 per 
cent in the year to October, 
and by 0.4 per cent between 
September and October. 

Nevertheless, the breakdown 
of the data painted a mixed 
picture of the underlying infla- 
tionary pressures, with some 
manufacturing sectors continu- 
ing to hold down their prices, 
while others are now passing 
recent rises in raw materials 
costs on to their customers. 

Output prices in the rubber 
and plastics sector, for exam- 
ple. rose by 1.7 per cent 
between September and Octo- 
ber. and by 2.7 per cent in the 
three months to October. ' 

The CSO said several large 


Cftemrcals 


Other imported materials 


Effect or> Inde* 
- 0.1 


-10 -6 O 5 10 16 20 5® 


plastics manufacturers 
reported that these price rises 
had been forced on them by 
rising raw materials costs, 
which grew by 7.7 per cent 
between July and October. 

The cost of raw materials in 
the chemicals sector also rose 
12 per cent last month . Some 
of this rise was passed on to 
customers, with output prices 
growing by 0.7 per cent in the 
month. 

Meanwhile publishing, paper 
and pulp input prices rose by 
1.2 per cent in rhe month, 
while output prices grew by 0.6 


per cent. These rises were 
partly offset by the fall in some 
commodity prices. 

Coffee costs, for example, fell 
by 5 per cent between Septem- 
ber and October. However, this 
followed a dramatic surge in 
coffee prices earlier this year, 
with cofree costs still three 
times higher than for last 
October. 

The monthly drop in coffee 
prices caused imported food 
costs to fall by 2.3 per cent in 
the month, although prices 
still stand 24 par cent higher 
than last October. 


Low gas prices are ‘unsustainable’ 


By Robert Corzine 


British Gas says it is making little effort to 
regain market share in the industrial sec- 
tor because present low prices are • unsus- 
tainable”. 

Mr Simon Kirk, managing director of 
Business Gas. the new name for the con- 
tract trading division which sells gas to 
industrial and commercial users, said yes- 
terday customers were getting "a wonder- 
ful deal” because of intense competition in 
the sector. 

But he said industrial gas prices had 


fallen “too low for gas companies to make 
money on a long-term basis”. 

Of gas. the industry regulator, recently 
lifted restrictions which prevented British 
Gas from offering discounts to commercial 
customers. The restrictions were imposed 
to encourage the growth of competition in 
the industrial segment of the market 

British Gas's share of the overall market 
above 2.500 therms a year has fallen to 51 
per cent, according to Mr Kirk, and could 
fail further. In the large company market 
above 25.000 therms the share has Mien to 
14 per cent. But the company was not 


intent on rebuilding market share because 
of the low prices. Instead it will focus on 
profitability. 

Mr Kirk called on Ofgas to lift the 
remaining restrictions on the company 
next year. He said current rules prevent it 
from tendering for multi-site contracts 
which include locations which use less 
than 25.000 therms. 

He predicted that the competitive pres- 
sures in the sector were unlikely to ease 
soon. Some executives at independent gas 
marketing companies do not expect the 
market to improve for at least a year. 


British Telecommunications 
trill announce today that it is 
going ahead with a fall com- 
mercial trial of its ambitions 

video -on-demand technology 
early next year. ' ■>:. 

A fiat trial involving-60 
homes, mainly of BT employ- 
ees, was a technical success. 
But because the service was 
free, little useful information 
was gained about consumer 
demand. 

BT will begin next month 
recruiting consumers ta2,500 
homes in the Colchester and 
Ipswich areas for be r i min g in 

the spring. 

BTs video-on-demand tech- 
nology Involves sending televi- 
sion pictures in digital'fbrm 
from a database down ordi- 
nary telephone lines. The 
capacity of the line is enough 
to carry a film, and an. ordi- 
nary voice conversation at the 
same time. . 

In the Colchester trial- the 
converter boxes needed to turn 
the digits back into a televi- 
sion picture will probably be 
supplied free. However, con- 
sumers are likely to be 
charged for the use they make - 
of the service to try to provide 
as realistic a commercial test 
as possible. 

BT sees video-on-demand 
providing eventually a large 
range of services but the ini- 
tial trials are likely to centre 
on films and making available 
on demand television pro- 
grammes viewers may have 
. miss ed. 

Five programme suppliers 
have signed up for the trial. 
They are Kingfisher, the Wool- 
worths holding company, 
Granada through its London 
Weekend Television subsid- 
iary, Pearson - owner of the 
Financial Times - Carlton 
Television and the BBC. 

• Pact the main body repre- 
senting independent television 
and film producers, wifi this 
week formally accuse the BBC 
of being guilty of a restraint of 
trade. 

Mr Tom Gatteridge, chair- 
man of Pact - the Producers 
Alliance for Cinema and TV - 
-will make the complaint of 
Unfairness to Mr Will Wyatt, 
managing director of BBC 
Television. 

Pact, which represents more 
titan 800 independent produc- 
tion companies,, claims inde- 
pendents are denied fair access 
to programme proposals. 

The main complaint is that 
independents do not have 
guaranteed assess to the BBC's 
channel controllers. Mr Alan 
Yentob at BBC 1 and Mr Mich- 
ael Jackson at BBC 2. Ideas 
have to be filtered first 
through heads of department, 
who are at the same time pro- 
moting in-honse ideas. 


Oiling the wheels of economic success 


Liverpool must work hard to reap the rewards 
from its local oilfields, says Ian Hamilton Fazey 


Developments in Liverpool Bay 


A "Klondike mentality" 
on Merseyside in 
northern England is 
preventing some companies in 
the region from seizing the 
opportunities offered by big 
investments in oil and gas 
fields off Liverpool. 

Mr Alan Kennedy, a recently 
retired Shell executive with 
more than 20 years' experience 
of the offshore industry, who 
advises a local authority, says 
local companies will have to 
fight hard to win business aris- 
ing from the oil finds. 

He claims some are not 
ambitious enough and expect 
orders to come to them simply 
because they are on the spot. 

“The oil industry doesn't 
need Liverpool and Mersey- 
side," be warns. "It's self-con- 
tained and can import 'every- 
thing it needs." 

His caution is echoed by Mr 
John Carne. operations direc- 
tor of US-owned Cooper Energy 
Services in Bootle. “I discour- 
age the belief that this will be 
another Klondike.” he says. 
“You have to take a more mea- 
sured approach. One should 
not predict success on the back 


of a few oil and gas fields - we 
have to be cautious." 

Those “few" fields could be 
significant. They are in Liver- 
pool Bay. the stretch of Irish 
Sea in the right-angle farmed 
by Lancashire and North 
Wales. There are 200m barrels 
of oil, mainly in Douglas, a 
field 15 miles north of Point of 
Ayr on the Welsh side of the 
Dee estuary. The rest is in a 
field called Lennox, five miles 
west of Southport. 

Lennox also contains gas - 
part of i.OOObn cu ft found 
there and in two other fields 
by Hamilton Oil. a subsidiary 
of Broken Hill Proprietary, the 
Australian steel, minerals and 
energy group. Gas has also 
been found in nearby fields 
called Hamilton and Hamilton 
North. Field life is estimated at 
17 years, but the Hamilton con- 
sortium - its partners in the 
exploration arc Lasxno and 
Monument - expects to find 
more. In fact. 16 companies 
have obtained exploration 
licences for the area. 

Hamilton chose the unused 
docks at Bootle as the onshore 
supply base for the project. 


against bids from several other 
areas, including Barrow-in-Fur- 
ness in Cumbria and Heysham 
in Lancashire. 

The activity has raised local 
expectations, which political 
and business leaders are trying 
to curb so local people will not 
be disappointed if no bonanza 
results. Ms Rita Darwin, head 
of economic development for 
the Merseyside borough of Sef- 
ton, says: “People have 
watched Dallas on television 
and think this is what happens 
when oil is discovered on your 
doorstep. 

"They look at the growth of 
Aberdeen 20 years ago and 
hope for something similar. 
But Aberdeen became a boom 
town with an oil price of $30 
(£ISJ a barrel. Something simi- 
lar is not going to happen here 
with the price down to $18." 

As margins have tightened, 
oil companies have become 
increasingly cost-conscious. 
“We don’t expect Hamilton to 
employ a lot of people." Ms 
Darwin says. "Meeting techni- 
cal specifications locally may 
also require a lot of investment 
as well as a new understanding 





P.V :****•',- . JL 

.-• . *'.* &£.. Liverpool 

* i***<** - J&Z 


Proposed route of pipelines 


. "PoMtolAyr , 

Rhyl *X 

, - „ Wnr' •' 


MPas 10 
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VVW.; 

Connah's Quay ’ Chesfer 


of wbat is meant by service in 
an industry that expects it 
instantly. 24 hours a day. 

"But we also know they will 
want day-to-day consumables. 
This is where we are already 
beginning to see immediate 
benefits to the local economy." 

These may be merely the 
crumbs of Hamilton's total 
£350m budget for ail onshore 
and offshore spending on the 
Liverpool Bay project - but 


they can sustain a lot of small 
companies. 

Mr Mike Swift, director of 
Sefton Chamber of Commerce 
and Industry, says: "To get any 
of this new money into the 
local economy, we have had to 
learn how the oil and gas 
industry buys its goods and 
services. We have also had to 
understand it's not another 
Klondike where fortunes will 
be made easily." 


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FINANCIAL TIMES TUESDAY NOVEMBER 15 1994 ★ 





There is only one problem with a car designed by computer. 
It looks just that: designed by computer: functional, pre- 
dictable, soulless. That's why we entrusted the design of die 
GS300 to Giorgetto Giugiaro. The result is perfection down 
to the smallest detail. Like the LS400. the GS300 is a per- 
fect union of aesthetics with technology: For instance, every- 
thing, from the headlights to the door handles, has been de- 
signed to create the lowest possible wind resistance. Inside, a 
choice of leather or velour upholstery’, air conditioning and 


7 speaker CD player, defies the notion dial beauty is only skin 
deep. Under the bonnet, the GS300 s ‘21 ‘2 hp (156 kV\ ), 
3-litre, 24 valve engine is mounted on its own sub-frame, 
before it is assembled on the body to absorb the slightest 
vibration. Its 4-speed automatic transmission adapts to die 
drivers mood and its independent double wishbone suspension 
guarantees high speed stability, confident braking and precise 
cornering. For peace of mind, the GS30U comes equipped 
with a host of safety measures. Advanced electronic ABS 


brakes and seat belt pre-tensioners are standard, as are dri- 
ver and front seat passenger airbags. However, to truly un- 
derstand what we mean by ‘the relentless pursuit of perfec- 
tion, set behind the w heel of the Lexus GS300. A test drive 
is worth a thousand words. 

©Lexus 

THE RELENTLESS PURSUIT OF PERFECTION 



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FINANCIAL TIMES TUESDAY NOVEMBER IS.I&A 


NEWS: UK 


MPs to 
safeguard 
role of 
mandarins 


Fresh controversy over Pergau dam 


UK NEWS DIGEST 


By James Blitz 


By Philip Stephens, 
Political Editor 


An influential committee of 
Dips Is set to call for a statu- 
tory code of conduct to guar- 
antee the political indepen- 
dence of Britain’s civil service. 

In a report critical of the 
stance adopted by Sir Robin 
Butler, the cabinet secretary, 
the committee is expected also 
to insist that ministers remain 
directly responsible to parlia- 
ment for semi-independent 
executive agencies. 

The report by the Treasury 
and Civil Service committee is 
understood to reject Sir Rob- 
in's view that existing rules 
and procedures provide suffi- 
cient protection for the impar- 
tiality of the civil service. 

The report's publication 
next week will echo disquiet 
among Sir Robin’s colleagues 
in Whitehall about his high- 
profile role in a number of 
political controversies. These 
include bis investigation of 
ministers in the “cash-for- 
questions" row and his exoner- 
ation of Mr Jonathan Aitken, 
tbe Treasury secretary, in the 
dispute over payment of a bill 
for a weekend stay at the Ritz 
Hotel in Paris. 

The report, dne to be pub- 
lished on November 24, has 
been endorsed by the full com- 
mittee, which has an in-bnilt 
Conservative majority. 

The proposal for a code of 
conduct with statutory back- 
ing to replace the dozen sepa- 
rate sets of rules under which 
civil servants now operate, 
falls short of the more pre- 
scriptive Civil Service Act 
favoured by some MPs. 

But the new code would set 
out in simple terms the obliga- 
tion of civil servants to be 
impartial and objective and 
would highlight the duty of 
ministers to respect their offi- 
cials' political neutrality. 

It would also end the pres- 
ent system in which the cabi- 
net secretary is the final arbi- 
ter in cases wheTe civil 
servants claim they are being 
pressured to act improperly. 

The MPs also recommend an 
independent appeals system. 


Britain could use its overseas aid 
budget to fund Malaysia's Pergau dam 
project, despite a High Court ruling last 
week that the government had acted 
illegally in making such donations. 

Amid growing controversy about the 
use of aid money to help finance inter- 
national arms deals, officials at the 
Treasury, the Foreign Office and the 
Overseas Development Administration 
have been examining ways of paying 
more than £200m to Malaysia without 
contravening the court judgment. 

The High Court ruled the ODA could 
not make direct payments for the Per- 
gau dam project because it does not 
promote tbe development of a country’s 
economy as required by UK law. 


However, Treasury" officials are now 
preimining a scheme whereby the ODA 
could be required to make the pay- 
ments indirectly so that Britain contin- 
ues to meet a commitment made by Mr 
Douglas Hurd, the Foreign Secretary, 
three years ago. 

Under the proposal, the cost of 
Britain's aid donation to Malaysia 
would be met from the Treasury's con- 
tingency fund. The Treasury would 
then rnflkp commensurate cuts in tbe 
ODA's budget. 

The Foreign Office is understood to 
have warned that this method of paying 
the Malaysians could run counter to tbe 
spirit of the High Court judgment and 
might invoke further legal penalties. 
However. Foreign Office officials will be 
keen to ensure that the payments 


do not come From their own budget. 

In wake of the High Court ruling, the 
government must decide quickly on 
how it will make the payments. 

Under the agreement struck with the 
Malaysian government, the ODA agreed 
to use its Aid and Trade Provision to 
provide a total of £234m in staged pay- 
ments to help build the dam. 

The government still has to make 
some £216m of these payments, which 
meet the costs of borrowing funds at 
concessionary interest rates to help 

build the dam. The next payment - 
some £l5m - is due on December 20. 

The controversy over the Pergau dam 
comes amid speculation that the UK 
has used development aid to forge a 
£6.lbn arms deal with tbe Indonesian 
government. 


At the weekend, the Foreign Office 
rejected any connection between weap- 
ons contracts and aid packages to the 
government of President Suharto. 

However, it emerged yesterday that 
UK military officials are planning a 
four-month military tour of Indonesia 
and other Far Eastern countries nest 
year to promote UK naval equip- 
ment. 

It is understood that Westland-built 
Lynx helicopters will be demonstrated 
to potential buyers when two Royal 
Navy frigates join Operation Austral- 
asia '95 in June. 

The ships will visit Indonesia. Mal- 
aysia, Singapore. Brunei. Thailand. 
Australia, New Zealand and Sri T.anka 
during the tour, scheduled to last from 
June to October. 


Court ruling a 
boost for 


Lloyd’s Names 


.3E&-- s?z :*&*** 



Hard-hit members of Lloyd’s of London yesterday w mi a cou rt 
order forcing details to be given on the level ofjmsnraiKe 
cover bought to meet possible negligence awards by .the pro-. 

fessional agencies they are suing. 

The ruling in the High Court may lead to scans mmcan o n 
being given about the amount of money available to meet any 
damages awarded to Names, the individuals whose assetshave 
traditionally supported the Lloyd's insurance maricet, . „ . - 
The decision is a fillip for Names such the Gooda^Mker 
Action Group members who last month won damage^ they 
estimated at £504m against Lloyd’s agencies but have, yet to 
Ji cp m mr how much they might actually receive.- _• ;• 
However lawyers acting for those who provided the “ errors 
and armssioiis” cover said they would appeal against file, 
ruling. 


Row over nuclear waste dump 


A proposed nuclear waste dump in Cumbria, northern 
England, should be abandoned because it is in an earthquake 
zone, says Greenpeace, the environmental ca mp ai gn group- 

It said the safety risk at the underground Nirex site at 
s»ii»fTi>Tri was being ignored by the government and nuclear 
industry, which had chosen the site for political, hot geo- 
logical reasons. 

Nirex dismissed the claim as “nonsense”. A decision on 
planning permission is at least four years away. ; 


Editor to step down 


Shaking off the glitches that plagued trial runs, high-speed trains rolled on schedule Monday during the first day of regular passenger service linking Paris, London 
and Brussels through the Channel tunnel. The inaugural London-Paris train even arrived two minutes early. Ten minutes after leaving Waterloo station the $40m, 
18-car train hit its top speed of 300km per hour (187 mph). slowing to 160 kph (100 mpb) for the 20 minutes it took to pass through the 3l.4-mile tunnel. pwur*-n»ry 


Major determined to shake ‘sleaze’ image 


Mr Andrew NeiL editor of the Sunday Tims for 11 years, 
yesterday severed most of his links with Mr Rupert Murdoch’s 
News Corporation in a pay-off reported to be in the region of 
film. 

Mr NeiL 45. has turned down the offer of a nightly US TV 
show after Mr Murdoch’s Fox Television network axed his 
planned weekly current affairs programme. 

He will now concentrate on a freelance broadcasting and 
writing career, including a book about his 10 years as Sunday 
Times editor. But he will continue to write for the paper 
occasionally after he steps down on December 31. 

“It's not divorce, it's an amicable separation," he said in 
London yesterday. 


Convenience food sales rise 


By David Owen 


Mr John Major last night 
underlined his determination 
to shake off the charges of 
sleaze that have damaged his 
government, with a robust 
attack on MPs who take on too 
many paid outside interests. 

The prime minister used his 
speech at the Lord Mayor's 
banquet in London to defend 
tbe right of MPs to have out- 
side interests and to argue that 
Britain would not benefit if 


parliament were populated by 
“wholly professional” politi- 
cians. But he said Westminster 
should not be “a hiring fair” or 
a “way” to other jobs, “as 
frankly it sometimes has 
been". 

Speaking as MPs prepared 
for tomorrow's Queen's Speech 
detailing next year's legislative 
programme. Mr Major said the 
recently established Nolan 
committee would have a con- 
tinuing role in policing stan- 
dards in British public life. 


The body's task was not just 
to meet “immediate ques- 
tions", he said. It was “to act 
as a r unnin g authority of refer- 
ence - almost, you might say. 
an ethical workshop called in 
to do running repairs.” 

In a speech billed by Down- 
ing Street as more than usu- 
ally his personal creation. Mr 
Major underlined the impor- 
tance of attracting the “right 
people” into public service and 
urged commentators to use 
their “very great" freedom to 


attack and expose with respon- 
sibility. 

Acknowledging the need to 
improve the accountability of 
the public service, he said gov- 
ernment had been “too secret 
tOO long.” “It is d amaging if 
there appears to be some kind 
of inside track - a gulf between 
those who know how to play 
the system and others who do 
not,'' he said. 

In a speech that ranged 
much more widely than the 
occasion’s traditional focus on 


foreign affairs. Mr Major also 
commented on the economy, 
business and Northern. Ireland- 

Welcoming recent remarks 
on the need for responsibility 
in setting executive pay levels, 
he said there was “no doubting 
the resentment that large and 
often unjustified pay rises’’ 
could cause. 

He said British capitalism 
had become “capitalism with a 
conscience, but there was still 
more that business could do to 
improve its image. 


Ready-made meals comprised almost 35 per cent of the average 
UK household’s food bill last year, a rise of nearly 10 per cent 
since the early 1980s, according to the 1993 National Food 
Survey. 

Sales of pizzas, frozen chips, crisps and other potato snacks 
also rose, while consumption of beef and lamb has dropped, 
according to the survey, published by the Ministry of Agricul- 
ture Fisheries and Food. 

The Meat and Livestock Commission said high land) prices 
probably accounted for the drop in consumption, while beef 
sales had been influenced by adverse publicity about BSE - 
mad cow disease. 

The survey showed that fresh potatoes accounted for 40 per 
cent of household consumption by weight in 1993 compared 
with 48 per cent in 1983. 



m just five years since reunification, the former East Germany has 
become one of the most attractive locations in Europe for international 
investors. 


London 

Tel.: +44 71 287 17 11 
Fax: +44 71 287 50 99 


New York, NY 

Tel.: +1 212 424 29 00 
Fax: +1 212 424 29 89 


Tokyo 

Tel.: +81 3 52 13 86 1 1 
Fax: +81 3 52 13 86 32 


Paris 

Tel.: +33 1 44 43 00 00 
Fax: +33 1 44 43 00 10 


Brussels 

Tel.: +32 2 775 05 1 1 
Fax: +32 2 775 05 99 


Singapore 

Tel.: +65 538 80 78 
Fax: +65 539 63 97 


Moscow 

Tel.: +7 50 22 56 51 09 
Fax: +7 50 22 56 51 10 


One of the prime reasons is its new and advanced telecom- 
munications infrastructure, the most sophisticated in the 
world. And the speed with which Deutsche Telekom 
has put it all in place is in itself a feat of engineering unpar- 
alleled in the world of communications. 

Currently, no fewer than 100,000 new telephone lines are 
being connected every month - over twenty times more 
than in the old German Democratic Republic. 

The telephone infrastructure for Eastern German industry 
is already ftdly established. 75 % of all local networks have 
been completely overhauled 


Data lines are now available in every area. And the same applies to 
mobile networks, radio, television and, from 1995, ISDN - the new 
nervous system of European industry. 

In high-performance fiber optics technology, Eastern Germany even 
leads the field. As the world’s first network operator, Deutsche Telekom 

is bringing fiber optics right to its customers’ doorsteps in the eastern 
part of the country. 

So a sound basis has been created 
for a secure and successful future. 

Now it’s up to investors to make a 
shrewd decision on where to set up 
business. 

Telecommunications made in 

Germany. We tie markets together. 


Deu tsche 



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financial times Tuesday 


NOVEMBER 151994 


11 


TECHNOLOGY 


Microsoft on-line 

to the future 

The software giant's planned information service for 
PC users is assessed by Louise Kehoe 


M icrosoft is set to bolt 
ooze its way into the 
on-line computer ser- 
*}ces business with 
^crosoft Net- 
wotJ, mveiled by Bfll Gates, chief 
executive, yesterday. 

, g 8 * 65 . described his vision of how 
data networks will change the way 
learn and communi- 
rate by the year 2005 at the huge 
Comdex computer trade showin 
Las Vegas. He said his planned 

onJme service wflt be a significant 

step toward realising the full prom- 
ts® of personal computing by mit- 
tmg “Information at your finger- 
tips^. 

Microsoft’s plans are not just 
ftrturistic dreams. The maid’s larg- 
est *n& most profitable software 
company aims to make the on-line 
services business a central aiamont 
of its long-term growth. As well as 
investing heavily in the new busi- 
ness venture itself. Microsoft is 
forming partnerships with tele- 
phone companies, publishers and 
entertainment groups to create a 
broad range of on-tine services. 

In preparation for these services, 
Microsoft has developed software 
far users and information providers. 
The company Is also proposing a 
business model that it believes will 
draw substantial third party Invest- 
ment to creating new interactive 
on-line services, greatly expanding 
the market 

The ultimate goal is to establish 
the Microsoft Network as a stan- 
dard “platform’*, or technology 
foundation, for interactive on-line 
services in much the same way that 
its Windows p r ogram is the soft- 
ware base far a huge variety of per- 
sonal computer applications. 

- The Microsoft Network “will pro- 
vide a setting for a worldwide elec- 
tronic marketplace of products and 
services from Microsoft and third 
parties,” the company says. 

Access to the Microsoft Network 
will be one of the features incorpo- 
rated in Windows 95, a new version 
erf the widelymsed PC operating sys- 
tem program, to be release! next 
April oar May. Purchasers of PCs ; 
loaded with the new software as 
well as those who upgrade their 
c ur r en t- v ersions of Windows, win . 


be offered a discount or free trial of 
the basic conuounications services 
of the Microsoft Network. These 
will include electronic mail, bulletin 
boards and ei iny« 

But Microsoft plans to expand its 
on-line services quickly with the 
addition of newspapers and maga- 
zines, shopping catalogues, games 
and educational services as well as 
its own base of sendees. To draw 
publishers to its n eteroric, Microsoft 
is offering thp ra fiwrfhp ity in how 
they run and charge for their 
on-line services. 

An on-line magazine on the 
Microsoft Network mi g ht, fox exam- 
ple. charge a modest subscription 
fee but raise additional revenue 
foam advertising A shopping cata- 
logue might offer free access but 
charge a transaction foe. Both will 
be able to control the look and feel 
of their on-line service to preserve 
their brand image. 

“We will be more flexib le than 
existing on-line services,” says Bfll 
Miller, Microsoft director of on-tine 
services marketing. “Providers will 
not be limited in the ways in which 
they realise revenue for their ser- 
vices. More important, they will 
retain the majority of the revalues 
that their content and services gen- 
erate.” 

Most of the current on-line 
services charge users simply 
according to bow much time they 
spend connected to the service and 
pay “content-providers” a flat 20-30 
per cent share of revenue. For 
users, Microsoft's plan will mean 
lower fees fra* basic services and the 


card and direct bank debit 
processing centres. 

Through an agreement with Visa, 
the biggest credit card provider, 
Microsoft is also creating tools to 
ensure security of on-line 
transactions using encryption 
technology. 

Microsoft has also developed 
software to make its on-line 
services easy to use. Methods for 
navigating the service will be based 
on the familiar Windows Interface. 
One enhancement will be 
“shortcuts” - the ability to return 
to a favourite on-tine service simply 
by clicking on an Icon. 

Companies could use such icons 
as a marketing tool, Mfller suggests. 
They might, for example, send icons 
to users via electronic mail in much 
the same way that companies today 
distribute advertising materials In 
the post Some users will throw 
away this “junk electronic mail”, 
but others will be tempted to click 
on the icon to look at the products 
or services cm offer. 

By matching its approach to 
on-line services closely to 
conventional business practices, 
Microsoft expects to attract a broad 
range of potential on-line service 
providers *h«t have until now hwwi 
struggling to figure out how to 
make money in the new world of 
interactive multimedia services. 

Companies going on-line via the 
Microsoft Network will nonetheless 
be tairinp a leap into the unknown. 
It is yet to be seen how many of 
Microsoft's Windows 95 purchasers 
will then sign on to the service. 


Companies going on-line via the Microsoft 
Network will nonetheless be taking 
a leap into the unknown 


option to spend more on specific 
information sources. It also 
eliminates the biggest drawback to 
exploring new cat-fine services - the 
cost of- connect time as you browse. 

To support this new approach to 
the on-line services business, 
Microsoft ' has created a 
sophisticated billing and tracking 
-system that will be linked to credit 


In contrast, companies such as 
Mosaic Communications that are 
bunding software tools to support 
electronic commerce on the Internet 
- the international computer 
information network with an 
estimated 25m-30m users - have an 
established customer base. 

“Companies that are writing 
applications for the Internet today 



Gates seas a world co mm unity of people. Ideas and information ‘at your fingertips’ 


are going to be best poised to create 
businesses in interactive digital 
services,” says Jim Clark, chairman 
of Mosaic Communications, a 
venture that sells Internet software. 
“Large companies are flocking on to 
the Internet because it has 
worldwide reach,” he claims 
“The Internet is going to get 
bigger and bigger and bigger and 
the Microsoft Network will end up 
being a footnote. I think it will faff. 
In the long term it will become just 
another service on the Internet” 

In the short term, however, 
Microsoft's plans are sending a chill 
through the commercial on-line 
services industry. CompuServe, 
Prodigy and America Online, the 
three leaders in consumer-oriented 
on-line services, which have about 
6m subscribers, are scrambling to 
drop prices and upgrade their 
services in anticipation of the 
Microsoft Network. 


Microsoft acknowledges that the 
perceived threat to established 
services may be overblown. “The 
notion that Microsoft enters the 
market and the world changes is 
crazy,” says Miller. “From where I 
sit, we have a long way to go to 
match the infrastructure and 
customers and partners of the 
existing services.” White Microsoft’s 
entry will undoubtedly create new 
interest in on-line services, existing 
services “are going to have an 
advantage over us in terms of what 
they ran offer to customers”. 

But for how long? With some 20m 
to 30m copies of Windows 95 
expected to be sold in the first 12 
months, Microsoft could quickly 
overtake all its competitors and 
fulfil Gates’s vision of “extending 
the Windows-based desktop 
[personal computer] to a worldwide 
community of people, ideas and 
Information". 


Clive Cookson on an ambitious 
biotechnology network 

Toolbox for 
genetic medicine 


T he most ambitious 
commercial network 
dedicated to research and 
development in genetic medicine 
so far was announced yesterday 
by Rhfine-Ptralenc Borer, the 
Franco- American pharmaceutical 

group. 

KPR has set up collaborations 
with 14 companies and a c ademic 

research organisations in the US 

ami France, to create what It says 
Is “the world's first broad 
biotechnology network” in the 
related fields of gene therapy and 
cell therapy. At the same tone it 
is establishing a new division, 
RPR Gencell, to co-ordinate the 
network. 

Gene therapy involves treating 
disease by transferring new 
genetic material (DNA) to the 
patient's cells. Cell therapy means 
removing cells from the body and 
treating them with biological 
agents, such as growth factors, to 
increase todr activity before 
returning them to the patient 
The two techniques coincide in 
u exvtoo gate therapy”, when 
DNA is added to cells removed 
temporarily from the body, to 
restore the function of a missing 
or defective gene. 

“Cell and gene therapies offer 
the opportunity to cure disease at 
its origin, while improving 
quality of life, reducing 
healthcare costs mid developing 
new preve n tive pr actic es,” says 
Robert Cawtoom, RPR chief 
executive. 

“It is dear that a variety of 
technologies - a toolbox, tf yon 
will - are needed if we are to 
conquer diseases such as cancer, 

Alzheimer's and cardiovascular 
disease. Onr answer is RPR 
Gencell, an integrated network of 
external and internal scientists 
that will share the ‘tools’ and 
expertise necessary to build 
successful cell and gene 
therapeutics on an accelerated 
timescale.” 

According to Thierry Sonrsac, 
general manager of RPR Gencell, 
the company has invested J300m 
(£190m) over the past two years 
in setting op toe network. RPR 
expects to spend about $l00m 
next year on R&D in gene and cell 
therapy. 


Other international drug 
companies, such as Sandra and 
Roche of Switzerland, Glaxo and 
SmithKltoe Beecham of the TJX, 
and Ell Lilly of the US, have made 
substantial investments in 
external R&D though alliances 
with biotech companies and 
universities. But Sonrsac claims 
that the RPR network is better 
planned and more comprehensive 
in rts chosen field. 

“The others have less a network 
and more a succession of 
investments,” he says. “We have 
bnflt something from the ground 
up, with clear vision and 
therapentie focus.” 

According to Sonrsac, RPR was 
able to set up its collaborations 
relatively inexpensi v ely, without 
the huge up-front payments that 
some other drug companies have 
made to biotech partners, because 
its partners can see the benefits 
the network will bring them. 

“Fbr example, Ed Robin {of the 
Lawrence Berkeley La bo r a tory 
Human Genome Centre, 
California] is floating on tens of 
jmXUons of dollars [in grants from 
the US government's gene 
sequencing p rog ra mmes],” 
Sonrsac says. “He doesn't need 
more money. What attracted him 
is the platform of technology 
offered by the chib.” 

Rubin agrees that his centre is 
less interested in more funding 
than in using the RPR network to 
speed up the application of newly 
discovered genes, particularly 
those predisposing to 
cardiovascular (heart) disease. 

“We have good candidate genes,” 
he says. “We need better tools to 
deliver them to the patient” 

The experimental ‘vectors* used 
to carry new genes into human 
cells include various viruses and 
tiny fet-like particles called 
liposomes. But there is also 
evidence that simply injecting 
the genes as ‘naked DNA’ 
can work well in some 
circumstances. 

The RPR network had six 
therapies In Clinical trials, with 
two more trials about to start 
The network win focus initially 
on cancer, cardiovascular disease 
and. disorders of the central 
nervous system. 





-I 

f ■ V 


r 






AXA Group hit 
companies bi : Belgian, 
fwwfa, France, G er man y 
Kong Kong. Italy. 
Japan, UnunhNsg, 
Malaysia, Mexico, 

NethQTtaadl, Portugal, 
Smtapoie. spate, 
United Kingdom United States. 


Money talks. This figure testifies to the 
trust thousands of fund managers and 
Individuals have put in AXA Group 
companies, located in 16 countries, on 
three continents. Alliance Capital 
4 Management and Donaldson Lufkin 
& Jenrette, subsidiaries of The Equitable 
in the USA, and AXA Equity & Law in 
the UK are shining examples. 

There are other revealing facts and 
figures about AXA. We are the fourth 
largest Insurance group in the world, 
based on funds under management. 
And over the last 15 years AXA has 
multiplied its revenues 780 times, its 
profits 150 times, its equity capital 160 
times and its funds under management 
690 times. 

As you can see. we are as good at 
managing other people's money as we 
are at managing our own business. For 
us. the two go hand In hand. 

So we are nor speaking lightly when we 
say : ‘Go ahead. You can rely on us". 


a v?i 

saXa 


INSURANCE & INVESTMENT 








12 


FLN ANCIAL TIMES TUESDAY NOVEMBER 15. 1994 - 


lvrAATAriFMFlVT: THE GROWING BUSINESS 



Second-hand goods 
treated as new 

Ian Hamilton Fazey looks at EU 
consumer product safety laws 


N ew ED consumer 

protection and product 
safety laws which took 
force in the UK last month have 
introduced criminal penalties of 
which many UK companies are 
still unaware, according to the 
Institute of Export's legal 
advisers. 

A statutory instrument 
amending UK company law came 
into effect on October 3, enforcing 
a 1992 directive from the Council 
of Ministers. The main thrust is to 
extend consumer protection and 
product safety regulations to 
second-hand goods which were 
previously exempt 
Second-hand goods are now 
expected to perform as new. 
however illogical and unsound 
this may seem. The new law is 
enforceable throughout the EU by 
local trading standards officers. 

“No one is sure how big the 
market is for reconditioned goods, 
but it must be worth hundreds of 
milli ons of pounds domestically." 
says Michael Thornton, a partner 
in Laytons, the institute's 
solicitors. “The bulk of the trade 
is in white goods, brown goods 
and teltronlcs." 

There are some large and 
medium-sized companies 
supplying second-hand and 
reconditioned goods to world 
markets - eastern Europe and 
parts of the Third World are 
targets - but much of the trade is 
among hundreds of small 
businesses, often operating from 
poorly-sited, retail units long 
abandoned by hig h street traders. 

They repair and recondition 
consumer durables such as 
refrigerators, microwave ovens, 
vacuum cleaners, lawnmowers, 
television sets, video recorders, 
cameras, and electronic 
equipment. Many are sole traders 
whose business has grown from 
doing local repairs. 

“Our experience so far is that 
people haven't really thought 
about whether their commercial 
terms of trading still protect 
them,” Thornton says. “If 
someone sells second-hand 
vacuum cleaners, he or she is now 
treated as a manufacturer of 
primary goods. 

“Moreover, if they import their 
supplies into the EU already 
reconditioned, they are now 


regarded under EU and UK law as 
their manufacturer” 

Previously, no warranties 
applied to second-hand goods 
other than the normal ones under 
the Sale of Goods Act, which 
meant they had to be basically fit 
for the purpose for which they 
were sold. Thornton says a 
Warrington supplier of 
reconditioned white goods to 
Spain has already provided a 
foretaste of what may be coming. 

Spain enforced the directive 
ahead of the UK but the owners of 
the Warrington company did not 
worry because they felt Its BS5750 
quality controls, coupled with a 
relatively high margin on many of 
its second-hand goods, would 
enable them to absorb the costs of 
putting faults right or giving 
people their money back. 

But this proved optimistic once 
the second-hand goods could be 
treated by customers as though 
they had been bought brand new. 
The company has been forced into 
insolvency because the cost of 
rectifying comparatively few 
faults has wiped out its margin. 

An additional aspect of the 
directive which is concerning 
lawyers is that manufacturers and 
suppliers must also worry about 
what use a product might be put 
to, even if it is far removed from 
the purpose for which it was sold. 

Thornton says: “The seller now 
has to ask who is going to use 
these goods, or who might use 
them. Will this lead to liabilities 
over and above what they have 
been used to?" 

The new regulations also allow 
the authorities - in the UK's case, 
local trading standards officers - 
to force a general recall of goods 
sold, with attendant publicity, if a 
recurring fault is found. 

Prosecution is possible if a 
supplier fails to recall goods when 
ordered to do so. Trading 
standards officers will also be able 
to contribute details to a 
Europe- wide database as part of a 
t rans -EU monitoring system. 

Criminal sanctions now include 
three months' prison for guilty 
directors and senior managers and 
Ones of up to £5,000 on summary 
conviction. The regulations are 
silent on penalties that might be 
imposed by higher courts for 
conviction on indictment. 


A year ago, Kenneth Clarke, 
chancellor of the exche- 
quer. introduced three 
measures in his Budget 
that were designed to increase the 
Cow of equity capital to small com- 
panies. 

The Enterprise Investment 
Scheme, Venture Capital Invest- 
ment Trusts and extension of capi- 
tal gains tax roll-over relief together 
represent one of the most concerted 
efforts to use fiscal incentives to 
coax life into young companies. 

Small-business watchers 
described the Budget as "the best 
ever” for small business. But as the 
chancellor polishes his plans for 
another Budget on November 29. 
how have last year's measures 
affected small companies' ability to 
raise capital? 

The answer is very little at the 
moment, as investors have been 
slow to come forward. Some accoun- 
tants and intermediaries say the tax 
breaks are a well-intentioned 
attempt to address a shortage of 
early-stage finance, but that there 
must be changes if they are to be 
effective. 

• Enterprise Investment Scheme. 
Intended to finance non -property- 
based trading companies, the EIS 
replaced the Business Expansion 
Scheme last December after the lat- 
ter had become a vehicle almost 
exclusively used for assured ten- 
ancy investment schemes. 

The ghost of the 1980s property 
boom lives on in the new EIS rules, 
however. To prevent the growth of 
property-based schemes, the new 
rules require a qualifying company 
to have no more than 5*1 per cent of 
gross assets in land and buildings. 

As John Orpen. partner at Coo- 
pers & Lybrand says, there are 
many companies, including small 
manufacturers, whose main asset is 
their building. 

A number of EIS schemes 
designed to finance perfectly legiti- 
mate trading companies have there- 
fore fallen at this property hurdle; 
investors have been worried that if 
balance sheets weaken as a result of 
poor trading, they risk losing their 
EIS tax benefits by breaching this 
property rule. 

Orpen believes speculation on 
property value inflation no longer 
figures in the minds of investors. 
The Enterprise Investment and 
Business Expansion Schemes Asso- 
ciation agrees and has asked the 
chancellor in its Budget submission 
to drop the property rule. 

There is also a problem of percep- 
tion. The most recent BES schemes 
were tax-driven. Now the EIS is 
addressing investors whose prime 
concern must be the prospects of 
the underlying business. 

The 20 per cent up-front tax relief, 
down from 40 per cent under the 
most recent BES schemes, is not 
wildly exciting - sponsors will 
charge about 8 per cent to issue an 


Without some changes, the chancellor’s ‘best ever 1 measures for small companies w9I flush out only minimal equity capital 

Wanted: a 
braver Budget 

Richard Gourlay on why last year’s moves to encourage 
more investment may have been too cautious 


E1IS prospectus, leaving a net tax 
break of only 12 per cent. 

The uptake has consequently 
been low. Where the government 
was expecting about £l25m to be 
invested in EIS schemes this year. 
Tim Villiers. chairman of the 
EIBESA. says a fraction of this has 
been raised. 

“Jerry's Home Stores was quickly 
over-subscribed but nothing else 
has raised its full subscription." Vil- 
Iiers says of the schemes. The EIS 
Company, a London-based consul- 
tancy, says only about a dozen 
schemes have been launched. 

Robert Lowe, director of Johnson 
Fry, the largest sponsor of BES. 
says his company has launched no 
EIS schemes. “We don't think it 
makes sense for major sponsors." 
Lowe says. “What may be happen- 
ing is that a sort of cottage industry 
is developing at a regional level 
with local accountants putting 
together deals. Maybe this is what 
was intended [by the govemment]"- 

• Capital gains tax roll-over 
relief. The most recent change to 
this law last November allows 
investors to shelter capital gains by 
reinvesting in a private trading 


company up to three years after the 
gain is realised. 

Not only was the deferral of capi- 
tal gains tax liability extended to 
cover the sale of almost any asset, 
the investor need now only re-in- 
vest the gain to receive the relief. 

Orpen and other intermediaries 
believe roll-over relief could be the 
most significant of the chancellor's 
capital-raising instruments as there 
are no restrictions on the amounts 
that can be invested. 

Inert tably, tax-based products are 
beginning to emerge. Johnson Fry 
has launched a scheme to raise up 
to £50m for Pioneer Oil and Gas, a 
private company that will buy 
North Sea assets already producing 
gas and oil and with proven 
reserves. Because investors are 
deferring their CGT liability, they 
are effectively receiving an interest- 
free loan from the Inland Revenue. 
It is within the new CGT roll-over 
relief rules, but it hardly constitutes 
support for capital-constrained trad- 
ing companies. 

• Venture Capital Investment 
Trusts. After months of listening to 
the pleas of the investment trust 
and venture capital communities. 


the government is likely to produce 
new rules in the next finance bfil. 
The most recent proposals 
suggested the VCITs would look 
like personal equity plans that 
invest in unquoted companies. 

Much of the lobbying suggested 
the VCITs would fail if the govern- 
ment did not raise the proposed 
maximum investment in each port- 
folio company from £Lm and did not 
introduce some form of front-end or 
CGT roll-over relief. 

It is early days for all three 
schemes. None of the schemes are 
well established - or well under- 
stood yet by investors. Further- 
more. the stock market's recent per- 
formance has not encouraged 
investors to think of buying shares, 
let alone hold some of their portfo- 
lio in unquoted investments. 

No one expects the government to 
make sweeping changes in this 
year's budget. But the government: 
would appear to have erred too far 
on the side of caution, some small 
company observers say. Unless it 
listens to some of the criticism, ..the 
schemes may flush out only a mini- . 
mal amount of expansion capital 
despite the early promise. . . 



Nutshell 


Heavy load for - 
directors . 

A recent surge of legislation has 
multiplied the responsibilities of 
directors and increased, the 
chances that they will incur per- 
sonal liability, says accountants 
finn Kidsobs Impey. Acting 
with honesty and Integrity may 
not be enough to ensure direc- 
tors do not fall foul of civn and 
criminal law. 

In a 22-page bookie! Kidsons 
Impey sets out the responsibili- 
ties, looks at director^ liabili- 
ties, how they, should handle 
transactions with their compa- 
nies and possible protective 
measures. TGdsons Impey says 

smaller company directors are 
most at risk' when they do not 
have adequate financial' Infor- 
mation and stresses the need for. 
up-to-date management, 

accounts. - 

Directors’ Responsibilities 
Available free from Eidsoh r 
Impey. Spectrum House.20-26 
Cursitor Street, London EC4A 
IHY 


Watch how td plan 
staying afloat v : 

A third of businesses fail in 
their first three, years maihly 
because of poor planning, Bar- 
days says. Most companies^ that' 
have survived their first year 
recognise tire value -of develop- 
ing a proper business plan 
before setting out Barclays is 
offering a free video on plan' 
ning -j sales and TMricrtiwg and 
• piarimf research to any business 
opening an account before next 
February. 

A more ' comprehensive 
description,: Including a . model 
business plan,. can be found tn, 
the forward to the seventh 
annual Gnideto Venture Capital 
tn the UK aid. Europe, published 
by Ventore Capital Report - - 

In rinding appendices on cash 
flow projections, the loan guar- 
antee scheme and. other sources 
of finance like the DTTs Smart 
technology awards. Out guide 
provides useful material for pre 
start-up businesses. 

The Venture Capital Report 
Guide to Venture Capital in the 
UK and Europe - £106 from VCR 
(mi 579999 


BUSINESS OPPORTUNITIES 

READERS ARE RECOMMBIDEO TO SEEK APPROPRIATE PROFESSIONAL ADVICE BEFORE ENTERING WTO COMMITMENTS 


BUSINESSES WANTED 


What will be. 

Preventing YOUR Company's 
Growth- in the Years Ahead ? 

Will you need ever increasing amounts of 
working capital? 

Will your bank be providing satisfactory support? 
Consider trie following: 

Would a source of funding 
geared to your turnover be helpful? 

Would you like to deal with professional and 
commercially oriented financiers? 

Would you like a top notch personal service that 
provides trie essentials In working capital for growth? 
Would you consider on alternative to bank overdraft or 
equity capital? 


I Wa 


^ • Causeway specialise in providing cashflow 

Ararat vta confidential invoice discounting and 


CAUSEWAY 

INVOICE 

DISCOUNTING 


. v U 1 MKR in 111 * 
i muDuu irvtx f 
INMH linn 


factoring services 

For expert advice contact- 

KX»“:7ACl=' 

V.Olr : iV’S 
* V-. r :c.c- £<C-4V3E STcT VAVCHSTsQ 7: l*f 
> : : -tSJAG-a : : 

.2 .:\\6 

\.cc;:scc!iv\sccv»w lv.tj 

' j a\o . =; -ci LC5C3V 


WATER/ EFFLUENT/ OIL PRODUCTS ETC 

STORAGE TANKS 
INCLUDING BUNDED TANKS 

FOR HIRE 

Cylindrical horizontal Tanks wan xxxx 
Long or Short Term Hire 

Ws supply a wide range at tanks lor 
water effluent etc. Large capacity. 

Speedy detfvery. Mud steel tanks For 
all products avadabta. 

Contact Mr. Nell Vessey 
PLANTCHAFT LTD, 1st FLOOR 
33 Oswald Rd. Scunthorpe. 

South Hurnberatde. 

DN15 7PN England. 

Telephone: (01724} 850224 
Fax- (01724) 720823 



Selling your Business? 


We have the skills and experience to achieve the best price for your 
business and structure the deal to achieve maximum tax efficiency. 
If you arc considering a sale and your turnover exceeds £Ini, 
we would like to talk to yoo. 

Our charges are based largely on results, so you have little to lose. 
For a confidential discussion without commitment please contact 
Lance Blnckstone or Gary Morley at: 


Blackstone 

Franks 


Blfickaionc I rank-. Corporate Fin jikt 
26-.14 Old Street. London IX )V 9HI, 
Tel: 071 250 5500 l av. n?l 250 1402 


TOP CLASS RACEHORSE 
FOR SAI F, 

Will have o favourite's chance 
of winning the Hetmessy Gold 
Cup at Newbury next week. 
For details tel: 

09S1 22363 


VEHICLE AFTER 
MARKET OPPORTUNHy 

Specialist light vehicle manufacture! 
seeks iw-opetatiM with established 
vehicle repafr-budyshop operation 
with spare capacity and space In 
Ccnnl/Nortti London area, uj exploit 
growing after market potential. 
Write to: BOX B3537. Financial Times, 
One Southwark Bridge, London SEI 9HL 


INVESTMENT OPPORTUNITY 

INTERIOR DESIGN 
SOLUTIONS 

Upmarket supplier of interior design services, 
distributing a wide range of quality decorating and 
furnishing products: 

• Well established, serving mainly private clients. 

• Unique design and distribution system capable of 
upgrade to latest interactive technology. 

• Strong UK and Far East presence, other developing 
overseas markets. 

• Profitable with sales over £1 million. 

An excellent opportunity for overseas suppliers looking 
to enter the UK market or MBI candidates with relevant 
industry/interior design experience. 

Interested parties please write to Samantha Penn at 
the address below. 

Livingstone Guarantee pic 
Acre House. 11-15 William Road, London NWl 3ER 


LIVINGSTONE GUARANTEE 


SFA Member 


BUSINESS GROWTH 

Ybur company can achieve additional growth in 1935 by adding pnjvon products, 
processes and technologies sourced by strategic partnerships w«i successful 
companies in Japan, N .America and elsewhere. 

We research high quaSty opportunities for companies and provide a Ml service 
including opportunity kterrtification, market research and agreement negotiation. 
Many PLCs and companies have achieved success with our programme since 
1979 and fun details are avalable from: 

Or Derek A Newton, Director - SFA TECHNOLOGIES LTD 
18 Arlington Avenue. Leamington Spa. Warwickshire, England. CV32 sun 
Tel: 0926 332228 Fax: 0828 335657 



From USS250 

Various Jurisdictions 
Information/immediate service: 


INTERNATIONAL COMPANY 


SERVICES (UK) LIMITED 

Standbrook House. 2 - 5 Old Bond 
Street LONDON. W1X3T8. 

Teb 071 493 4244 
Fax: 071 491 0605 


INDEPENDENT BUSINESS 
CONSULTANTS 
Interesting opportunities for 
established Consultants. 
Please forward detailed CV together 
with profile of current activities and 
KpotMl location t« 

Box BiS-»2_ Ftnanciil Times. 

One Southwark Bridge. London SEI 9KL 


1 Welcome to 1 

2VEVEY 

business. 

an 

Montreuxe 

Your Place of 

IMMinMlMik 

panrits lw ritana 
p- Tm rutief sp to 10 y* 

and confuted 

at m duffle 

p. unaquaM atandad 

•ito* 

p. sewtatotMij 

and business j 

Forjiwpyotuor / 

j- 

si 

I 

"ftenurr Ci/oao". nnraraSl . 

Mn-fari-A. Grater. Ecwpik Cuaudba 

P.0. Box IJMLCH-IUO Montmn 1 

PhfW 4I2IM3 411 -W.Fjx 41 ’l/Mh? SJ 65 


WE SEEK 

A MAJORITY STAKE 

in 

A substantial 

Service Organisation in the 
world of Business Svstcms 
Ref: MK/CL 
Fax: 0279 466156 


Software Design 

Company 

with innovative high 
return products seeks 
licensing deals or business/ 
marketing arrangements 
with larger company to 
folly exploit products. 

Please reply to: 

Merchant Investments Limited, 
58 Qumt Street, Edinburgh 
EH23NS 


ORANGE GROVES IN 
ARE LA ZONED FOR 
SINGLE FAMILY HOMES 


European group telling 525 acres (254 
million mj. yards) ot productive, 
expandable orange groves including own 
maintenance operation in largely 
developed area in SW Florida, zoned far 
single family homes. The location *> ibe 
perimeter of « preferred small uvn with 
modern infra-structure, airport and 
promnily to the Gulf of Mexico make 
this object especially attractive. 

Price USS-L5 mafcon; 
partial sale conceivable. 

Brochure and information available from: 

Eva Andres, 401 W. Oak Street. 

Arcadia. FL 33821, USA. 

TeL USA 813 494 3Q98 
Fax: USA 8L3 993 0353 
Trie phone contact in Switzerland: 
411 (Oil 422 3812 (tape recorder) 


CHANNEL 

ISLANDS 

Offshore Company Formation 
and Administration. 

Also Liberia. 

Panama *6 BVI etc 
Total offshore facilities 
and services. 

For details aad appointment write 
Cray Tiuu Lid. Bel mom House. 

2-0 Belmont RiL Si Heltn. Jenev. Cl 

Tel: 0534 7R774. Fax 0534 35401 
IliJIVJ227 C0F01UI C 


COMMERCIAL 

FINANCE 

Venture Capital available from 
£25,000 upwards. Sensible 
Rates, Sensible Fees. Broker 
enquiries welcome. 

Anjfo American ventures Lid. 

Teh (0924) 201365. 

Fax (0924) 3)1377 


PRJVATE INVESTMENT 
COMPANY SEEKS FUNDS 
far property purchase. 
Returns of up to I5'5> offered. 
Principals please reply to: 
Boa B3538. Financial Times. 

One Sooth* ark Bridge. London SEI UHL 


100 QUALITY 
CONTROLLED 

informal Investment and jv 
opportunities each month in The 
Capital Exchange Gazette. 

For sample tropy call 
0432-342484. 


Pw ywr basin*** a red equity capital? 
/vc^NRltii Btahum Anjrb h»e n* optui 
V- l^V acd etpetiK to invnL Tri 0491 579999 



Business wanted 

Manufacturing Company 
required 

Our client is a highly acquisitive fully listed company and is seeking to 
buy a manufacturing company which: 

■ is a market leader 

■ has significant growth potential 

■ has pre-tax profits from £1/2 million to over £7 million 

Potential vendors or their agents should contact either Bruce Barclay 
or Lance Sapstord on 0171 311 8577 in complete confidence. Your 
identity or any other details will not be revealed to our client without 
your prior consent. 


KPMG Corporate Finance 
8 Salisbury Square. London EC4Y 8BB 
Telephone- 0171 236 8000 
Telefax: 0171 311 8252 

.KP\|i, i -,j*n if* | 4 RA'Uo; tun w .-I LPMU Pm «rt u.fa r uuJN-n-vd r.. 

ifv luaimk f iu'iurtl ••«!■ oi LreUJ ttilf* i.iv'im m utuvnrtii hn«*ur*-i 


KPMil'i 


FOOTWEAR COMPONENT 
AND MATERIALS MANUFACTURERS 

Onr riiem. a substantial UK footwear company is seeking Acquisition opportunities of footwear 
cooipuiKou and malciuls nuuificiurer* bared in (he UK and Europe. Onr elm would be 
particularly micmied hj hear from cmnpjam mreilag the foUowiog cri t eria- 

* The manufacture and Jr.irfburran uf footwear materials, components and related products. 
■ Purchase ciM-ddeutinn of between EI-20 million. 

tin nested ponies should contact Sigtl Morgan, in cunfoknce al 

,-- BPG Corporate Finance Limited 

SJ Grosvcnin Sinw. London WIX dDF 
Td: 071 W 2550 Fa*: 071 02 1 ) ■M44 

“The Middle Market Transaction Expert*' 

Acquisitions 4 Disposals • Management Buy-Outs 

A member d SFA 


BUSINESSES 
WANTED 

Professional services group 
seeks other service businesses 
(any trade) 

* Profits minimum drink 

* Management retained 

Write to Box B3534, Financial 
Times, One Southwark 
Bridge, London SEI 9HL 


INTERNATIONAL 
UKBASED 
ENGINEERING PLC 

seeks to acquire 
processing/ pack aging 
equipmenl companies or 
product fines with turnover 
of between £2m - £ I Ocn. 

Principals please reply to: 

Box B352S. Financial Timex. 
One Southwark Bridge. 
London SEI Wl 


OFFICE EQUIPMENT 


OFFICE FURNITURE 


We have - direct from the manufacturer - 
new high quality executive and system ranges 
- conference and receptions. Large choice of veneers, 
melamine and/or laminate finishes 


with discount of up to 40% from R.R.P.! 


London Showroom for viewing: 

Ariel House, 76 Charlotte Street. London Wl Tel: 0374 741439 
Full camcad and planning services. 


LINEABURO LTD Tel: 0992 503313 


BUSINESSES FOR SALE 

Appear every Tuesday. Friday and Saturday. 

For further information or to advertise in this section please contact 
Karl Lovnion on +44 71 873 4780 or Lesley Sumner on +44 71 873 3308 or Fax: +44 71 873 3064 







worldwide 


mpany 


kpmg 


ITV& 




(In Administration) 

The Joint Administrators, [an Brown FCA, MSPI and Lcn Gatoff BAfEocm), 
PGA, MSPI, olTcr Tor sale the assets of the above company which operates 
as a passenger transport business based In the North East of England with an 
annual turnover of approximately £2.8 million. 

The company's assets comprise: 

■ In excess of 30 operating routes and comprehensive private hire and 
tour coaching operation. 

■ Bus fleet of over 60 vehides. 

■ freehold premises which indudes 1.6 acres ofhnd. 

For further information please contact either W Paxton or B. A. Branch 
at the company's premises on telephone number 032S 463569, or 
the Joint Administrators at Touche Ross & Co., 93a Grey Street, 
Newcastle upon Tyne NEI 6EA. Tel: 091 261 4111 . Fax: 091 232 7665. 




FOR SALE 

Mortgage Company 

Loan book value circa 

£5 million 

Profitable 

Cash generative 

Low overheads 

Experienced management 


For further information please contact: 

Julian Gibbms, at 
Parnell Kerr Forster 
New Garden House 
78 Han on Garden 
London ECIN 8JA 

Tel: 0171 831 7393 Fax: 017> 782 9390 




PNmdl Knr Footer we taforiccd by be Iwmac of 
Oartered AtcoanranO in E^-Uad and Wales lo cany aa 
hrv uliu c m huBnrw a Ac Hurt Kin gd o m 


R\NNELL 

FORSTER 





Whitehead Letterfiles 

Limited and 

^ ass3ss ^- A. Kingham Limited 

(In Administrative Receivership) 

The Joint Admimstadve Receivers offer lor 
sale the business and I ho assets of the 
above companies. 

The companies specialise in the manu- 
facture of manilla shelf tiling and fifes with 
fittings: 

m m C4 million turnover through j/l dwtneh of 
l distribution 
j» * Good gross margins 

! m Factories at Milton Keynes and Birmingham 
m Manufacturing plant 

For further information contact: Mr Wl Kelly 
or Mr DJ Roberts of Ernst X young. PO Box I. 
3 Colmore Row, Birmingham B3 2DB. 

Telephone: 021-626 6262. Facsimile: 0 ’7-6-6 6305. 

=U Ernst&Young 

taMM tr> fto iasflMe * Cturtma Anwmtmxs * tneunrf amt m«im 
liaiwoln u eMi ftoii torm . 


SPADE & 
ARCHER 



GAbraaMltB 

USA 

ut81MM-US0 
&r 818-584- 12-5S 
mtoath 
sa30€feoLaxn 


Fine English Hotels Limited 
jin Administrative Receivership and 
Liquidation) 

The Joint Administrate Receivers, A J Barret and R C 
Boys-Stone offer lor sate as going concerns the busi- 
nesses and assets of 4 quality hotels. 

The Plantation Inn 
Chester 

• 73 Bedrooms. 

The Chesterfield Hotel 
Chesterfield 

• 73 Bedrooms. 

The Oakiands Hotel 
Nr Grimsby 

• 45 Bedrooms. 

The Hermitage Hotel 
Bournemouth 

• 71 Bedrooms. 

Offers invited individually or as a group. 

Interested parties should contact the sole agents: 
Messrs Robert Barry & Co, 7 Upper Grosvenor 
Street Mayfair, London, W1X 9PA. 

Telephone: 071-491 3026. 

FacsbrdK 071-629 9373. 

PriceWiterhouse # 

Pnce WaJertJouBt is auftomad by B» tasiitute ol Chartered 
Accourta n ts in Engand and Walts to any an mstment business 


FOR SALE 

- Private specialist engineering company with international 
based sales in oil and gas industry. 

Based in North West Turnover approx £3m. 

Q A IS09002L Loyal and effective workforce. 
Directors retiring doe to ill health. 

Will accept disconnt to net worth of £480k for quick sale. 

Write UK Box B375Z, Ftoadal Tltii. t^c QmW i w fc Bri ri g r. Jn a rtn a SEl *ffl. 


He St Louis, PARIS 

Restaurant FOR SALE. 

Excellent location, \fery low rent 
High turnover with year on year growth. Price FFr3m. 
Farffek PARIS 010 331 48086277 


GASKET MAKER 

T/O E400K, GP 49%, 
BS5750. 
ttgh level repeat 
business, retirement sale. 

Cal: Cedrio Ro bertshaw 
071-631 0659 


PHOTOGRAPHIC 
STUDIO/LABORATORY: 
NORTH OF MANCHESTER; 

convenient motorway network, 
turnover £350,000 per annum, 
returning 70% gross profit, vest 
potBnlfBf, wef equipped. Herd £15,000 
pa, BUSINESS £350,000 Hat 1875 

HARVEY SILVER HOOGMNSON 
TEL: 081 8338000 


QUARRY PLANT MANUFACTURER 
AND GENERAL FABRICATOR 




Coopers 
&Lynrand 


Engineering €o Ltd 

The Joint Administrative Receivers offer tor sole the business and 
assets of me above company. 

Principal featares of the business IndtxJe: 

• design and hutfd capabifify 

• blue chip customer base 

• turnover £4.5 mifflan In year » 30 June 1994 

• fcrtmH liaHay nnrt iMrei In rntinBn ldmdwhfciiMMn 

easy teach of mototway network. 

Foi knitter intonroKon please contact Bob Botey or Tim Cockcrofl 
at Coopers & Lybrand, Abacus House, 32 Friar Lane. LetcesTer 
LEI 5RA. Telephone: (0533) 518764. Fat (0533) 536929. 

Cuofen A LybnnJ h aalbaristJ by ibelmiintr of CharltmlAccoanunts 
in England ud Wales u> can} an Invouneol Bmincsi. 


Coopers 
CLy brand 


MICHAEL H0RR0CKS AND MARK PAU0S 
JOINT ADMINISTRATIVE RECEIVERS 




1 1 1 TFTi J iTiTiTcj 1 1 I ■; 4 y-'i H TT) 


Oflra are rnvfled tor me business aid assets ol the above Company 
which manufactures □ wide Rings ol printing and vnfilnQ papers at te 
premises In Bury near Manchester. 

Principal tenures of the business todude; 

• annual turnover cken £1 0m 

• two paper nuAIng machines 

• red and sheet mantaoefeae 

• dreo 40 acre long leasehold she wflti 143,000 sq fl accommodation. 

For fatter W a maftw please canted tfcrt Pottos or Work QMtteM a 
Coopers &LYtxnmLAtxHais Court 6 Wn^iuSSkeet. Manchester Ml 3£0. 
Telephone: (0B1) 236 9191. Fa* (061) 228 3920. 


Cuupcn ft Lj brand is omharisal by Hie UnUtoK of Chart end Acconnlnms in 
Rneland and Wake la Carr* aa Inveanm Bbocm. 


OFFSHORE GUERNSEY CY i 
FOR SALE i 

Comprising 9 commercial 
properties freehold. ! 
Apply for documentation to: j 
No: 018 815 814 i 
Publicity Gendvc \ 
Case postale 645, 1211 Gen&ve 3 ■ 


EC Meat Processing Plants; 
for Sale or Lease. i 

( 

EnquVtes in wiling ID Box no. B3538 ; 

Fmenda) Times, ‘ 

One Southwark Bridge. 

London SEi BHL 


Principals only please. 




FOR SALE 

Profitable long established niche 
maH order/ reta3 business. T/O 
C440K. price £95,000 + SAV 
approx C60K_ 

Write to Box B3524, Financial Times. 
One Southwark Bridge, 
London SEI BHL 


r ■ 1 m M The Joint AJnuoutntdve Recvh-erm, 

/ jm m Brian Mills & Colin G Vwinan <A Bonh While, 
^■■■8 / B M oflei tof rale ihc bujmds auJ J«ri 

‘ Bakes Equ/pmcnr Sjwwtto LrJ. 

Commercial Manufacturers of 

CATERING EQUIPMENT 

□ Extensive and diverse product range 

□ Fiillf equipped freehold premises near Brentwood 

□ Established business with broad-customer base 

□ T/O to year end PAH cX436,000 

Ref- HB I 


EDWARD SYMMONS 

A PARTNERS 

2 Southwark Street, Loudon Bridge, London SEI IRQ 
Fiat 071-407 6423 

LONDON - MANCHESTER - LtVERTOOl. • BRISTOL - SlHTKAMPT ON 


CONTROL & INSTRUMENTATION CONTRACTOR 
FOR SALE 

This highly profitable company based in Scotland, whose main 
activities are reimbursable contracts, panel manufacture, 
maintenance and employment business/agency, has enjoyed 
an impressive growth to a turnover of £4ra serving blue chip 
clients within the process plant industry. 

Interested parties prepared to offer cash only ore advised to contact 
Box B 3543. financial Tima, One Southwark Bridge. London SB1 9HL 


Businesses & Property in Receivership 


RETIREMENT SALE. LARGE RETAIL UNIT ON 
THE OUTSKIRTS OF HASTINGS 

IN FIUME LOCATION WITH OWN CARPARKS, ROOM FOR EXPANSION. 

Turnover £1 Jm gross. Gross Profit £180k. Premium L/H HOOK, 
Rent £45K or would consider FREEHOLD SALE. Ideal far existing 
company lo expand or turd working business family. 

Write u Box B3544, Financial Tunes, Oar Southwark Bridge, London SEI 9HL 


PW* PACES 


wop o rr 

PACES 


Fully Meaed wecMypide to go's In Sqridaaan ft isc el uarahlp, go's 
tn trouble, msoNency auedons. bislnesses tor sole Nee Sections: 
PreJnseMncy ft LFB ReoefamaMpe. 

the UK#Me to cou i n e rc io l property In ncetmsHp and tor sate - 
100'a of property trargptrra ■ Hotels, Nwatag Homes. Land. ORIces, 
Retail ft Inouotrfal prom toes . Oenolopmert opport u ntdee etc. 


Tel: 071-407 8454 $ J '% . 


Tel: (0273) 628681 Fax: 698661 


BUSINESS OPPORTUNITY 
LOG 

UlP»«ogOTtqitar jndapgnfafcdaateoe: 

» —i iliadfriff IjMitelMi 
• Coapaten fa Ihwbie 


RodBoed by eeponced pratarimic *idi 
aeriooi faenoai people i> wtad 
Ha a dre tl a of Cos md oormety to each 'cue. 
Tel: 071JS3 SOm Fve 071 -.TO 500* 


PORTABLE AUTOCLAVE | 
MANUFACTURER 

for sate as going concern, or rights ' 
to manufacture. Lucrative service j 
c ontr ac t s through existing users. > 
Plane to franchise sates, service ' 
end dstribudon outlined. Price i 
guide £50.000 - £150,000. j 

Write id Box B3B4S, Fhandal Thnoa, * 
One So&mark Bridge. Lonctn SEI 9HL 1 


RECRUITMENT 

AGENCY 

Highly proGt^Ie £1 million plus 
T/O. Established 10 yts. Market 
leader in higb-tec nidie. South 
east hxatioa. Seeks merger 
dacasskms with larger business. 

Objective - lo accelerate 
expansion into identified areas of 
fast developing technologies. 

Write to Box B354L Fwnmrid Times. 

One Southwark Bridge, 
London SEi 9HL 


LEGAL 

NOTICES 


Importer/Dfatrfbatorof 
Ladies Leather Garments 
& Knitwear 
Old established. London Based. 
Profitable bnrinesB supplying 
stoics A upmarket retail 
Freehold property. Ret ireme nt. 

Jade SeenririnUd, Acre Hone, 
UrUWHan Road, LimdoaNWl 3Ht 


CHAIN OR PARTY SHOPS 
5 locations la London 
and Saney 

Annual sales about £1 mffliou, 
including, delivery, hire 
and contract services. 
Contact CEA 

Fax: 9932 865473 


1 00+ LIVE 

Businesses tor 
sale and 

sales of assets fortnightly 

0712621164 
Fax: 071 7063464 



repeal prepend by the Mel AderleiMreliv* 
Rrt^en Modes Section U of Ibcwbl Act. The 
meettog any, if il itonla m. esublkfa > 




MINISTRY OF PRIVATISATION 
REPUBLIC OF POLAND 


The Minister of Pri va ti sa tion acting on behalf of Che State Treasury, in accordance with the 
Privatisation Law (Article 23, 13 July 1990) invites interested parties to submit expression of interest 
for the acquisition of minimum 10% shares in 

SLASKIE ZAKLADY PRZEMYStU CUKIERNICZEGO 

HANKA 

sp6lka akcyjna 

The company is located in Siemianowice Slaskie near Katowice and manufactures: chocolate, 
dtocolabe covered products and hard candy. The company employs 456 people and had sales of 170 
bln Pzl in 1993 and 100 bln PSriin first six months of 1994. 

In accordance with the Privatisation Law (Article 24) up to 20% of shares will be offered to the 
company's employees on preferential terms. The State Treasury wfli retain 5% of Company's shares 
as a reserve for die State ^ Treasury that can be used for reprivatisation purposes (Declaration Number 
86 of the council of Ministers dated Ctetober 4, 1993). 

This invitation is directed to strategic investors interested in a majority stake 

Submission of expression of interest should be by fax within two weeks of the date of publication of 
this advertisement After signing a Letter of Confidentiality, the potential investors will have the 
right to visit the company: Within five wedo from fee date of publication of this advertisement, 
potential investors wfli be provided with an information mmnorandmn. Within three weeks 


The Minister of Privatisation reserves the right te caned this invitation and not to take up 

without emne reasons. 


(21 Oedian »tac dims are atolly Mcared 
are Dpi tasuiod tu anenri a be repsevnled «1 Ite 

CTECOnC 7 Nowreher \W 

T R Harm 

totol AdntoBtmive Reccnet 

Cooper, Jt Lwbnod. HjOftlr Jo Old 

Bariej. Loretoo EC4M 7PL 



Andre Mierzwa 
Director Privatisation Sendees 
Central Europe Trust Co Ltd. 
ftjc(48-2)6217573 



,U§T 


io the above Pension an (Dleriurasre 
p n—n l by ibe C.wn -»f SeMum a> ihr 

[n Bowing renm. 

Eifitoagh. <Hb November l-AI 

Hk L ncdaappoini Ihc PMuoo lobe buoainloa 
i be ml* » rraiiirrn turn aod lo be >b>n 1 jsed 
once to ibe Edubosb 'tozenc wd raer ■ rech 
ol the and die Finaocul rime* 

nr n wp ni rre: iBpowti all parties .iummg aa 
nines* in torige Am«n Ihcron. it so aivred. 
willlD 21 data allcl sucb ianireainJo and 
advolioessreaL ' 

■LVoahl M P,r*. IPO 1 
ot whfeb mthnaiino a tereby Rtocn 

Sbepbeiri A MridaNi/n WS 

SawreCoert 

JOCaok Telracr 


NoJXtolJ9ef l*W 

INTUEinCH COURT OP JUSTICE 
CHANCERY DIVISION 

companies cotnrr 

Ol THE MATTER OF 
STORM GROUP PLC 

and 

IK THE MATTER OK 
THECOMIWNIES.XCT IMS 

NOTICE IS HERESY GIVEN that tlx Ortfa of 
Ibe Hifib Coon of J«Xke [Cb«nc»y Divisiunl 
dated 2Mh *7 of Oewbn IVW jnslbo iB^ ibc 
irstaaioo of Ite above Coafal.t'aahair prexatetn 
■am by C1.728.IUi » rrpbiciol b> ibc 
bMre rf Coonteiies on ibc JTlIi day ol 

October IW. 

Daied lliii Illb day of Noacrabef !***! 

Edgeft Effiroa 
f^I^Snabmpfoo Reft- 
luodoa WCU iU 
Ref; AWRWJh 

Sohdim for Ibe abo>e-oan>“l I ■«n1“7 


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ntojed to ate ewere Terre and rcmliU *f. 
Busies of wfeki are as^ibhto »sv wtoioE l| i 
The Advataoneat Rudaana Ubwoi. 
The ftemcid times. One SoMliwaiV. Dndpc. 
LoodooSEI WL Tit «A1 71 X73 Mil 
FktpW71 K7J.HJW 


GREEK EXPORTS S A. i 

FOUNDED AND OWNED BY ETBA. SA. ! 

ANNOUNCEMENT OF A SECOND REPEAT PUBLIC AUCTION FOR THE SALE OF THE ASSETS OF VIEL S.A. - j 
COATED ABRASIVES INDUSTRY. NOW UNDER SPECIAL LIQUIDATION j 

GREEK EXPORTS S-A^ established in Athens at 17 Panepistimiou Street, in its capacity as liquidating company following decision No. } 
9583/1992 of the Athens Court of Appeal and in accordance with Article 46a of Law 1892/90 as complemented by Article 14 of Law 2000/91 ' 
and supplemented and amended by Article 53 of Law 2224/94 and within the framework of written instructions dated 20.9.1994 from ETBA - 
S.A. (basic creditor and shareholder of VIEL SA.) j 

ANNOUNCES j 

a second repeal public auction for the highest bidder with sealed, binding offers for the purchase, as a whole, of Ibe total assets of VIEL SA. { 
now under special liquidation. j 

BRIEF DESCRIPTION OF THE COMPANY 

VIEL SA. was established in 1981 (Govt Gazette 2627/81) and set up a modem industrial unit for the production of coaled abrasives in the 
Patras industrial estate on a plot of about 12,806m 2 . The factory has a surface area o 3,568 m* and auxiliary buildings an area of 586m 1 . The 
basic machinery was built and installed by BRUCKNER of Germany and JGEL of Austria. 

During the first months of liquidation the company was scmi-operationaL However, in April 1993. as a result of serious financial problems, t 
the factory was closed and is now non- operational. 

TERMS OF THE AUCTION 

1. Interested parlies are invited to receive from the Liquidator the Offering Memorandum and draft Letter of Guarantee in order to submit a 
sealed, binding offer to the notary public appointed lo the auction, Mrs Andxiam-Dimitro Zapbeitopoulou-Ecouomopoulou, 18 Vbukourestiou 
Sl. 5th floor, Tel. +30-1-361.8249 op to Monday, 5th December 1994 up to 1400 hours. 

Offers must be submitted in person or by a legally authorised representative. 

Offers submitted beyond the staled lime limit will not be accepted or considered. 

2. The bids will be unsealed before the above-mentioned notary on Tuesday. 6th December 1994 at 1200 hours, with the Liquidator in 
attendance. Parties having submitted bids within the prescribed time limit are also authorised lo attend. 

3. The sealed, binding offers must clearly state ibc offered price and method of payment (cash or credit, the number of instalments, (he time 
period over which the payments are to be made at a fixed interest rate during the entire period of settlement). 

4. Offers shall be null and void unless accompanied by a letter of guarantee from a bank legally operating in Greece. The letter will be valid 

until the signing of the contract and will be to the amount of fifty axBbon drachmas (50,000, 000) for VIEL SA. - COATED ABRASl VES 
INDUSTRY. i 

5. The Company "s assets and aif fixed and circulating elements (hat comprise them, immovables, movables, claims, rights etc. are to be sold j 

and transferred as is and where is, and. more specifically, in their actual and legal condition and location on the dale on which tbe sale comma | 
is signed, regardless of whether the Company is operating or Dot- ' 

6. The Liquidator, the Company and the creditors representing 51% of tbe total claims against the Company (Law 1892/90, article 46a, para, i 

I as in force), shall bear no liability for any legal or actual defects or for any deficiency in the particulars of the effects for sale or rights, nor ! 
for their incomplete or faulty description in the Offering Memorandum and in any correspondence. In tbe event of inconsistencies, entries in I 
the Company’s books, as they stand on (he dale of signature of (he sale contract, shall prevail. ‘ 

7. Prospective buyers, hereinafter referred to as Buyers, shall be obliged, on their own responsibility and due care, and by their own means and ; 

at their own expense, to inspect the object of the sale and form their own judgement and declare in their bids that they are fully aware of (he j 
actual and legal condirioa of the assets for sale. The Buyers are hereby reminded that, in accordance with the provisions of the law, the Buyers, ; 
having agreed in writing (o maintain confidentiality, may receive the Offering Memorandum and may have access to any information they may | 
require concerning the Company for sale. i 

8. Offers must not contain terms upon which their bindingness may depend or be vague with regard to the height of the amount offered or its [ 

method of payment or to any other essential matter affecting ibc sale. j 

9. On all points concerning the business plans of prospective buyers (job positions, height of investments, duration of operation, etc.) as well t 

as on any other terms that may be agreed upon, the Buyer must accept clauses and other terms which will guarantee adherence to commitments. | 
In order lo guarantee payment of the amount on credit, the sale contract will contain a dissolution clause and first mortgage, or other guarantees ( 
(bank guarantee, etc.) to be considered adequate by the creditors. j 

10. The highest bidder is the one whose offer has been evaluated by the liquidator and judged by the creditors as being the most satisfactory. 

J J. In the event that the parly lo whom ibe assets for sale have been adjudicated fails in his obligation to appear and sign the relative contract 
within twenty (20) days of being invited to do so by the Liquidator, and abide by the obligations contained in the present announcement, then 
the amount of ibc guarantee staled above is forfeited to the Liquidator to cover expenses of all kinds, time spent and any real or paper loss 
suffered by himself and by (he creditors with no obligation on his part to provide evidence of such loss or consider that the amount has been 
forfciied as a penally clause, and collect ii from the guarantor bank. Letters of guarantee accompanying the offers of other bidders, except the 
highest bidder, will be returned to them immediately alter the adjudication of the auction. 

12. The Liquidator bears no responsibility or obligation towards participants in the auction, both with regard to the drafting of the evaluation 
report on the bids or to his proposal of the highest bidder. Also he is not responsible and has no obligation to participants in tbe auction in the 
event of a cancellation or nullification of the auction for any cause or reason whatsoever. 

13 Participants in the auction who have submitted bids do not acquire any right and can make no demand or claim on the strength of this 
announcement or of their participation, against the Liquidator Of the creditors fbt any cause or reason. 

14. The transfer expenses of the assets for sale (faxes. VAT charges on the value of ibc movables, stamp duly, notary fees and mortgagor fees, : 
rights and other expenses for drawing up topographical diagrams as per Law 651/19T7, etc) will be home by the buyec. [ 

15 Participation in the auction implies acceptance of (he terms of the present anoounccmenL | 

For any further information please apply to: | 

al GREEK EXPORTS SA. 17 Panepistimiou Street (1st floor), Athens, Greece, Tel. +30-1-324 Jill - 115 Fax: +30-1-323.9185 j 

b) The head office of ETBA SA.. Holdings Department, S7 Syngrou Ave, (4tb floor) Athens, Greece, Tel. +30-1-929.461 1 and 929.4613 ■ 












14 


FINANCIAL TIMES TUESDAY NOVEMBER IS l95^n... ... 


BUSINESS AND THE LAW 


Drugs imports 
advert ban upheld 



EUROPEAN 

COURT 


A German ban on 
advertising or 
pharmaceuticals 
imported from 
other EU member 
countries was jus- 
tified under Rome 
treaty free move- 
ment rules, the 
European Court of Justice ruled 
last week. 

The Court said the ban was a 
restriction on internal market 
trade which could be prohibited 
under the Rome treaty, but was 
justified on public health grounds. 

In the absence of Community 
harmonisation measures, there- 
fore. the ban benefited horn the 
exception to the treaty prohibition 
of free movement of goods restric- 
tions. 

The Saarbrucken Landgericht 
liad referred two questions on the 
interpretation of the Treaty free 
movement of goods rules to the 
ECJ. 

The questions arose in the con- 
text of litigation between Lucien 
Ortscheit and Eurim-Pharm, two 
German pharmaceutical import- 
ers- Lucien Ortscheit sought an 
order that its competitor cease 
advertising foreign imports which 
had not been approved by the Ger- 
man authorities. Under German 
law. all pharmaceuticals, includ- 
ing imparts, must be approved by 
the responsible Federal authority 
prior to marketing in Germany. 
But there is an exception for cer- 
tain pharmaceuticals authorised 
in their country of origin which 
may be lawfully marketed when 
ordered by pharmacists in limited 
quantities to supply prescriptions. 

The advertising of this specific 
category of imports is prohibited 
by the German law (Heilmittelicer- 
begesetz ) relied on by Lucien 
Ortscheit Since April 1992, Eurim- 
Pharm had advertised in the pro- 
fessional medical press the avail- 
ability of imported pharmaceuti- 
cals unauthorised in Germany. 

The ECJ said the advertising 
ban was a restriction on the free 
movement of goods since it 
applied only to imports. 

It did not affect the marketing 
of domestic products in the same 
way as imports originating in 
other member countries. There- 
fore, it could not escape the Rome 
treaty prohibition of restrictions 
on the free movement of goods. 

In particular, the advertising 
ban could potentially restrict the 
volume of pharmaceutical imports 


concerned by depriving the mar- 
ket of information on their avail- 
ability. 

On whether the ban was justi- 
fied on public health grounds, the 
Court said it was covered by the 
treaty exception to the prohibition: 
of import restrictions for a num- 
ber of reasons. First, the treaty 
exception remained applicable in 
the field of production and mar- 
keting of pharmaceuticals insofar 
as Community harmonisation of| 
national rules was incomplete. Ini 
particular, the 1992 directive 
(Directive 92/28/ EEC) on the 
advertising of drugs for human 
use was not in force at the time 
material to the German dispute. 

The ECJ then confirmed that 
public health was among the fore- 
most interests protected by the 
exception to the treaty prohibition 
of free movement of goods restric- 
tions. The Court said the member 
countries were free to decide the 
degree of health protection they 
provided subject to the limits 
imposed by the treaty. The excep- 
tion. therefore, would apply only Lf| 
there was no method less restric- 
tive of trade than tbe advertising! 
which was equally effective for its 
purpose. 

It concluded that the advertising 
ban was necessary to prevent eva 
sion of the German pharmaceuti- 
cal authorisation regime. Since 
there was not yet a Community 
approval system or reciprocal rec- 
ognition of national authorisa- 
tions, member countries were 
required by the 1965 pharmaceuti- 
cal harmonisation directive (modi 
fled in 1989) only to permit the 
marketing of pharmaceuticals 
authorised by their responsible 
national authority. 

The advertising ban was 
intended to maintain the excep- 
tional character of the specific 
authorisation exception for 
imports so that the normal author- 
isation requirement would not be 
systematically evaded. If there 
was no such ban. there was a risk 
that manufacturers would obtain 
authorisation in member coun- 
tries where standards were less 
strict, and then import the phar- 
maceuticals into Germany on the 
basis of orders resulting from 
advertising campaigns. 

C- 320/ 93, Lucien Ortscheit v 
Eurim-Pharm. ECJ 5CH, Nocember\ 
10 1994. 

BRICK COURT CHAMBERS, 
BRUSSELS. 


P roposals published last 
month by the Securities 
and investment!! Board, the 
City's chief regulator, for 
compensating people who took out 
a personal pension on poor advice 
were clearly designed to reduce the 
risk of court battles on the issue. 

For individual victims of poor 
advice, the SIB scheme may well 
have removed the need to sue. But 
several of the life companies and 
independent financial advisers, 
which must foot the compensation 
bill, are far from happy with the 
scheme and some have consulted 
lawyers about possibly mounting a 
court challenge. 

No life company has expressed 
qualms about compensating those 
wrongly advised by its direct sales 
force or by a "tied agent” - a com- 
pany which sells only tbe insurer's 
policies. They are less sanguine 
about liability for poor advice from 
independent financial advisers 
(IFAs) selling their products. 

Life companies also believe others 
have responsibilities to bear. First 
among them is the government, 
which promoted personal pensions 
with such enthusiasm. Second are 
the occupational pension schemes 
whose rules for calculating the 
value of a lump sum which could be 
transferred by someone moving to a 
personal plan is open to challenge. 

No legal actions have been 
launched yet by insurance compa- 
nies challenging SIB's proposals. Mr 
Do mini e Clarke, a partner of City 
solicitors Herbert Smith, says 
nobody wants to be the first to chal- 
lenge the compensation scheme 
because of the bad publicity it may 
generate. But the potential for liti- 
gation is enormous. 

In theory the SIB proposals are 
directed at the front line regulators, 
such as the Personal Investment 
Authority, which are supposed to 
turn them into rules or guidance for 
the life companies which they could 
be penalised for not following. But 
it is clear that the very status of the 
proposals may be the subject of a 
legal challenge. 

The SIB plan urges occupational 
schemes to take back people who 
have opted out of an occupational 
pension scheme and to allow retro- 
spective admission to those who 
decided on poor advice not to join a 
scheme in the first place. If scheme 
trustees do not want to take people 
back, the life company or IF A is 
supposed to “top-up" the personal 
pension so that, at retirement, the 
benefits the occupational scheme 
would have offered can be matched. 

In the case of transferees - those 
people who have left a company and 
then transferred their occupational 
pension entitlement to a personal 
plan (where occupational schemes 
are likely to be less keen to have 
people back) - a top-up is also SIB's 
preferred method of compensation. 
Only where someone has already 


High risk of a poor 
financial product 

A legal challenge is likely to plans to compensate people. badly 
advised on pensions, say Robert Rice and Alison Smith 


OUR. FREE ADVICE IS TPiHS THE 

Motley and run, however our 
legal opinion comes a little 

MORE- EXPEN57VE 


LIFE INSURANCE Q> 
pu= 



retired would compensation be an 
immediate cash sum. 

But, says Mr Clarke, if you take 
the case of a transferee who 
received poor advice from an 1FA. 
his remedy in law would be an 
action for damages for negligence 
against the IF A - proceedings to 
which neither the trustees of an 
occupational scheme nor the life 
company would be party. 

The SIB scheme is proposing a 
form of remedy for the loss suffered 
by victims of poor advice which has 
no apparent basis in law. The prin- 
ciple of a non-cash based compensa- 
tion scheme may be sound, he says, 
but there is some doubt as to 
whether it is enforceable in law. 

Mr ian Gault, another Herbert 
Smith pensions partner, says it is 
not difficult to see the potential for 
conflict between occupational 
scheme trustees and life companies. 

The big questions are under what 
circumstances will trustees allow 
reinstatement of those who opted 
out. and on what terms? [f schemes 
prove reluctant to have people back 
lire companies and advisers are 
going to be left holding the baby. 

This could be particularly hard 
for mutuals, (building societies), 
which sold through IFAs who will 
be left with no alternative but to 
dip Into reserves set aside for 
■'with-profits" policyholders to 


meet the costs of top-ups. 

In life companies, the burden of 
paying for top-ups will fall on share- 
holders. Neither group is likely to 
be happy with this prospect and 
both may decide to sue the com- 
pany or its directors for negligence 
or for breach of fiduciary’ duty. 

That may force life companies 
into pre-emptive defensive legal 
action, not in the belief they can 
escape without contributing to com- 
pensation altogether, but to estab- 
lish that the company had no option 
but to contribute, thus protecting it 
from challenge by its own policy- 
holders or shareholders. 

B ut the most difficult and 
imm ediate questions relate 
to policies sold by IFAs. 
Here, says Mr Clarke, 
there is a potentional for dispute in 
almost all cases. 

The expectation is that where the 
business was sold through an IF A. 
the IFA will foot the bill because it 
gave the poor advice. The SIB 
scheme envisages IFAs relying on 
their professional indemnity insur- 
ance to meet compensation claims. 

But professional indemnity cover 
can often be lost if a firm makes a 
settlement or admits liability to a 
client without the agreement of its 
insurer. Or the rFA may have 
received misleading marketing 


information from the life company 
which it relied an in selling the 
personal pension. So there is signifi- 
cant potential for litigation between 
professional indemnity insurers, life 
companies and IFAs. 

The life companies’ mast aggres- 
sive noises, however, relate to the 
payment of compensation for 
wrongly-advised clients of indepen- 
dent advisers which have already 
gone out of business or which do so 
in the course of reviewing their 
potential liability for poor advice. 

This may end up being a rela- 
tively small part of the total com- 
pensation bill - which some esti- 
mates put at about £2bn - but the 
very uncertainty increases the incli- 
nation to consider legal action. . 

In the usual way, the bfil for such 
compensation would be met by the 
Investors' Compensation Scheme, 
which is funded by the financial 
services industry. The retail finan- 
cial services sector - where the per- 
sonal investment authority is the 
main regulator - would be expected 
to foot the bill for compensating 
clients of companies which have 
gone out of business in its own sec- 
tor, Up to an annual limit. .of £100m. 

There is a formula- for assessing 
how the ICS bill each year should 
be divided within the sector, but the 
SIB plan deliberately foiled to pro-, 
vide a formula for dividing costs for 


personal pension claiins . ^ter hext 
spring. ’ . : . ' Wv’ '?/ . 

BAT Industries, which - nwns- 
insurers Allied Dunbar ahtF'Eagfe 
Star, said this month it woidd-aht 
sider legal action against the SB ff 
Ufe companies which ' operate: 
mainly througha direct sales force, , 
as it does, were made to contribute' 
towards compensating clients of for- 
mer Independent advisers. . s ; 

Another potential, area of ebai-- 
lenge would be Jf other. businesses 

- within the retail finaucial^servtees 
sector - such as unit trust compa- 
nies - found themselves drawn into 
the compensation, arrangements 
through paying levies to.the Imres-: 

tors'. Compensation. Scheme, simply 
as a result of being in -the same 
sector, even though they- tod not 
sold any pensions at all. . " 

Mr John Pearson, a pensions part- 
ner of City solicitors Lovell White 

- Durrant, beliema note of realism 
needs to be struck, however. All the 
dire predictions about the total 

- compensation bill assume that most 

investors will be able to establish 
liability by a life company or an 
IFA. But this may be harder than it - 
looks, he says. • ■■ *• j 

For an investor to" succeed In 
proving an entitlement to compen- 

- sation, he or she wilt have to show: 
first, that the poor advice amounted 
to a material compliance 'fault 
under the regulations infbrce at toe 
time; second, thatthe investor-suf- 
fered actual or prospectiveTossrand. 
third, that the loss was. a" result of 
tbe compliance defoult. . . 

The assumption, be says, is that if 
an investor can prove' the first two 
elements the third .wifi foDow anto- 
maticaUy. But in many cases that is 
not at all certain- 

Amid the talk about legalaction, 
two points of realism are already 
coming through. 

The first is that the probability of 
a ffrflUwng ft to the SIB’s proposals Is 
directly related to the likely size of 
the compensation bill, and how 
quickly the amonnt Is known. • -■ 

The bad publicity and costs of a 
legal action to resist contributing to 
compensation for pension victims 
are earner to justify tbe higher and 
more uncertain the potential pay- 
ments involved. 

The second point is that even if 
the law is unclear now about the 
ability of life companies to contrib- 
ute towards compensating the cli- 
ents of others, the prospects of a 
successful and effective legal chal- 
lenge by a life company may be 
slight One life company chief exec- 
utive explained why he put no faith 
in a legal action: “If there is any 
doubt, toe government wifi simply 
-make sure that the law is clarified 
so that we can contribute," he said. 

IFAs may have -less qualms about 
litigating, however, -particularly If 
the alternative is bankruptcy. 
Either ^way the lawyers . arc' .agreed: 
a legal challenge is inevitable. 


BUSINESSES FOR SALE 


ALUMIX S.P.A 

THERMO-ELECTRIC POWER PLANT OF FUS/NA (VENICE - ITALY) 

FOR SALE BY TENDER 

ALUMIX S.RA (‘ALUMIX"), a company operating in (he aluminium industry with a number ol 
production plants located in several Italian regions. Intends to proceed with the sale ol the thermo- 
electric power plant of Fuslna (the "Fusina power plant") based in Porto Marghera. Venice, In 
accordance with its production restructuring programme. 

The Fusina power plant is located on 93,000 sq. m. of land, 5,700 sq.m of which are occupied by 
the plant, and ft Is divided into two separate lots, one of which Includes a sea water intake (lagoon). 

The plant, which was shut down in 1983 after 135,000 hours of operation. Is In good condition as 
certified by an in-depth study carried out by a specialist consultancy. 

On 29 July 1992, ALUMIX was granted all the necessary permits for the rehabilitation and expansion 
of the plant This Includes the installation of a gas turbine of 299 MWt and 94 MWe and the use of 
a recovery boiler to teed the existing steam turbines, capable of producing an additional 50 MWe 
with an overall electric power maximum output of 144 MWe (electric power only) and capacity for 
other Industrial uses such as co-gene rad on. 

Potential buyers may purchase plots of land In addition to the existing site to allow the set up of new 
production facilities to absorb the thermal energy produced by the co-generation plant. 

ALUMIX has appointed FIDIMI CONSULTING (IMI GROUP) to assist in the proposed sale of the 
Fusina power plant Accordingly. Interested parties should make written request for the Information 
Memorandum on the Fusina power plant within 1 5 days of this announcement to: 

FIDIMI CONSULTING S.pA, Via Sicilia 66, 00187 - Rome, Italy, attention Mr. Giuseppe Tucci; tel. 
+39 6 445 7341 . Fax +39 6.445 7077; Or 

SIGECO (UK) Ltd., IMI House. 8 Laurence Pountney Hill, London EC4R OBE, attention Mr. Mario 
Cotta; lei +44 71 283 6264. Fax +44 71 623 1323. 

ALUMIX reserves the right to select at Its own discretion the parties with whom it will negotiate the 
sale of the business. Prior to receipt of the information memorandum and of an outline of the 
procedure for sale, eligible bidders will be required to enter into a confidentiality agreement which 
should be received by FWiml Consulting or Slgeco UK within 30 days from the date of this notice. 
Inquiries by brokers and agents will not be accepted. 

Neither this announcement nor the receipt of any offers by ALUMIX will create any obligation or 
commitment to sell to any bidder nor give any right to require any performance on the part of 
ALUMIX for any reason. 


HOTELS AND 
LICENSED PREMISES 


BUSINESS 

SERVICES 


PORTFOLIO OF 33 TEED 
PUBLIC HOUSES 

Midlands to Northwest 

Current MAT’S Barrelage 4150 
Rent £161,433 
AWP income £42,521 


£2.99m (Subject to Contract) 
Only 


Named Principals 


Write to: Box B3753. Financial Times. 
Oik- Southwark Bridge, London SEt 9HL 


PRODUCT 

DfSIGN & DEVELOPMENT 


F'fnvbnl Bain >jn nll.T* FliT 

u»l iHcrtR* VJtiniOM We cm ispr 
npnnr * LpAtfr ratoa; untoi-e, r*n I'IiVWJh 
■ n PKOH1* l£fn Ac (min cl .a-tar* A * D 
>Antenm> tOVlM.V; U> MClUHt 
| nu o; n 5 !«jo fvto7i; i;ii» 


.H'OTIIL TO HOT 

HalkidikL Greece - 173 bedrooms, 4 star hotel opened 1992. On the beach 
with restaurants, pool, bars. Wry profitable. 

TO RENT 19% OR LONGER, 

OR WILL SELL - PRICE: 1557.000000 Drachma 
ffiih'fe for Sale in Para. 5/uhi. Loudon, Fhmtce. German}/. Gum iy blonds 

MICHAEL PEGG INTERNATIONAL 
Telephone 0272- 420243/Fax 0272 . 420247 


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PEOPLE 


Iveson quits MMB and 
returns to the north 


Alan Iveson, managing 
director of the Milk Marketing 
Board until its abolition on 
November 1, has become chief 
executive of Teesside Training 
and Enterprise Council. 

Iveson, 43. spent 21 years 
with the MMB; as md of the 
Bl-year-old business was 
responsible for a £2b annual 
turnover. 

He says he could have 
remained within the dairy sec- 
tor but decided to opt for a 
change by moving to the Tec. 
“It’s an opportunity to make a 
direct contribution to the 
improvement of the local com- 
munity," he says. 

Bebb quits 
Senior board 

David Bebb is resigning from 
the board of Senior 
Engineering and leaving the 
tabular products, ducting and 
thermal engineering company 
after 32 years. 

The announcement comes 
less than a month after Sentor 
issued a profits warning 
because of cost over-runs on a 
significant UK contract, and a 
shortfall In orders, in its 
thermal engineering division 
which Bebb ran for four years 
nntil this summer. 

Then Kevin Gamble, who 
runs Senior's construction 


He has come into Teesside 
Tec as it gears up for a new 
challenge, thanks to Samsung, 
the Korean industrial group 
which last month announced 
its choice of Teesside for a 
£450 m electronics complex. 
Middlesbrough-based Teesside 
Tec. which is providing £5m 
towards the project, is to set 
up a special training centre for 
Samsung. 

"Teesside must be doing 
something right if it can get a 
big player like that," says Ive- 
son, who sees scope for promo- 
ting a greater team approach 
between the area's employers, 
local authorities, educational 


services division, assumed tbe 
additional responsibility for 
thermal engineering, and 
Bebb, an Australian, was pnt 
in charge of developing 
Senior’s Asia Pacific Interests. 
.Andrew Baxter 

■ Peter Wrightson has been 
promoted to the board of 
SCHOLL as md of Scholl 
Consumer Products on the 
retirement of Ray Thomas. 

■ John Gill, formerly sales 
director BOC's Oluneda 
division, has been appointed 
sales and marketing director 
for RACAL Health and Safety. 

■ Kerry McDonagh, formerly 
head of dealer operations at 
Leyland DAF Trucks, has been 


establishments and economic 
regeneration bodies. 

He believes his MMB experi- 
ence of negotiating, with UK 
government departments and 
the European Community, rep- 
resenting the UK dairy indus- 
try, will be of use in his new 
role. 

“I understand how we might 
get these relationships working 
for Teesside," he says. 

Originally from Derbyshire 
but based In Surrey for the 
MMB, Iveson welcomes the 
chance to move bade to toe 
north of England. Ironically, 
his predecessor as the Tec 
chief executive, John Howell, 
has gone In the reverse direc- 
tion: originally from south 
London, last month he became 
chief executive of Solotec, cov- 
ering Bexley. Bromley, Croy- 
don and Sutton. Chris Tighe 


appointed marketing director 
of CONTINENTAL Tyre and 
Rubber Group. 

■ Ken Wright, formerly 
operations director, has been 
appointed assistant md, and 
Jim Cotton-Betterldge, 
formerly director and general 
manager of Royal Mail 
International, marketing 
director, at ROYAL MAIL. 

■ Melvyn Bird has been 
appointed sales and marketing 
director of James Gibbons 
Format, part of IT GROUP. 

■ Andy Weston-Webb, 
formerly marketing director of 
Colgate Spain, has been 
appointed European marketing 
director of McVitie's, part of 
UNITED BISCUITS. 


Cheung seeks further Fortune 


Barry Cheung - the new man 
at the helm of Fortune Oil. the 
London-listed oil company that 
has just completed its first 
joint venture In China - may 
be worth watching. 

He peppers his conversation 
with jargon about strategic 
perspective and streamlining 
Fortune's board: words to grat- 
ify a management school (he 
has a Harvard MBA and is an 
ex-McKinsey consultant), but 
which conceal a nuts-and-bolts 
attitude and solid understand- 
ing of running a company 
spanning two countries and 
cultures, 

Cheung, 36, was horn in 
Hong Kong to which his par- 
ents bad emigrated from the 
northern Chinese provinces of 
Hubei and Shandong, and edu- 
cated at Sussex University. He 
spent many years living in the 
UK and Los Angeles and car- 



ries a US passport. However, 
he recently made his first ever 
trip to Beijing - and says it felt 
like going home. 

A former member of the Cen- 
tral Policy Unit, a Hong Kong 
government think tank, 
Cheung nevertheless reels off a 
string of criticisms of the colo- 
ny's government. He questions 


an educational system that 
produces students proficient in 
neither English nor Cantonese, 
and says Hong Kong's disputed 
port extension may turn out to 
be a white elephant. 

But his commitment to local 
culture appears rock solid. His 
children attend Chinese 
schools, rather than the inter- 
national institutions favoured 
by expatriates and Chinese 
who have lived overseas. 

Less than a month after 
Cheung took over as chief 
executive, Fortune has just 
completed a 525m single point 
mooring oil terminal in Maom- 
tug which will enable the local 
oil refinery to increase its 
capacity substantially. It is the 
company’s first joint venture 
in the world’s third largest 
economy and Cheung is confi- 
dent that it is just the first of 
many. Louise Lucas 


Finance moves 

UBS, the securities house, has 
announced changes in its con- 
vertible and warrant business. 

-Mark Larldn. head of con- 
vertible trading, has resigned 
suddenly. The Tall in the bond 
markets is believed to have led 
to heavy losses in convertible 
trading, although UBS would 
not comment on its trading 
position. 

Larkin, who resigned last 
Tuesday, has been replaced by 
his Former deputy, Colin 
Dimmock. 

Separately, Michael Ham- 
mond has joined UBS in New 
York as executive director, 
head of international convert- 
ible and warrant sales from 
CSFB, where he was In inter- 
national convertible sales for 
five years. 

Grant Williams is to join 
UBS in London on December l 
as director of Asian equity 
derivative trading from Robert 
Fleming where he has been 
since 1985, most recently as 
manager of south-east Asian 
trading. Martin Brice 



■ Michael Deakin (above), 
senior investment manager, 
has been appointed general 
manager - investments of 
CLERICAL MEDICAL 
Investment Group as from next 
ApriL 

■ Gerry Murphy has been 
promoted to group operations 
director of FIRST NATIONAL 
BUILDING SOCIETY; he is 
chairman of the Irish element 
of the European Union Theme 
Project. 

■ David Ritchie, deputy group 
executive, is also appointed 
chairman, and Leslie Robb md, 
or SCOTTISH WIDOWS 
Investment Management. 

■ Monique Nooy has been 
appointed a European 
marketing director at 
FOREIGN & COLONIAL; she 
moves from Pictet. 

■ Steven Bobasch, formerly 
director and deputy head of 
group credit at Kleinwort 
Benson, has been appointed 
head of credit at SOCIETE 
GENERALE’s London branch. 





FINANCIAL TIMES 


TUESDAY NOVEMBER IS 1994 


15 


★ 


Ashton celebrated 

Clement Crisp reviews the Royal Ballet 


I to USJS?* up 

toe RoyzS 

Ballet is offering two 

prolamines of &l£ 

vUL ^/^erick Ashton 
wren toe added seasonal plea- 

£}*? his Cinderella. This is a 

“Oration 
“ ~® work of the man whose 
crrations vitally shaped oS 

Sf 1 ***” of <**£dai2 
^Ashton was a genius. First 
Mane Rambert, then Ninptip 
<te Valois gave him his earliest 
chances, and de Valois - pS 

5S* “ - entrusted him 

«le of chief choreog- 
rapher to her company in ims 
FV cm that moment on he made 
Wtete which can be seen as an 
ascending curve of imaginative 
hrjjllance, craft and poetic sen- 
sibility. 

I have been fortunate enough 
to much of his work with 
Kg ^ casts. (Ashton was 
often indifferent to dancers 
who took over roles, and could 
make such devastating com- 
ments as “She’s not chic" 
by which he meant wit in tech- 
nique and manner). His matu- 
rity as a choreographer came 
after the war. For the next 
three decades he made ballets 
whose variety and felicity of 
means were central to the 
Royal Ballet’s identity. 

He took on the mantle of Pet- 
ipa and gave us Cinderella, the 
delicious and shamefully 
neglected Sytoia, the tragic 
Ondine, the sunburst of La 
Fille mat gardie, and the 
romance of The Two Pigeons. 
Be explored Fonteyn’s gifts in 
role after role. He could evoke 
Greek myth in the mysterious 
Persephone and Daphnis and 
Chine, and extract the essence 
from a drama to make a work 
as emotionally succinct as 
Month in the Country. He could 
be hugely and subtly funny in 
A Wedding Bouquet, and very 
moving through no less subtle 
means in Lament of the Wooes. 
He could make dance glitter - 
one of his own favourite works 
was the sublime theorem of 
Seines de ballet - and make his 
dancers opulent, grand, in 
Birthday Offering. 


Above all, his creativity fed 
on music, and on qualities he 
sensed in his interpreters - 
hence his lack of much interest 
in their successors. His ballets 
remain the truest portrait of 
his company for much of its 
existence. So now, somewhat 
belatedly, the Royal Ballet 
makes an Ashton homage. A 
stage shared with opera pre- 
cludes the celebrations that 
New York City Ballet gave in 
last spring's showing of 73 Bal- 
anchine works. But 1 made a 
tally of some 30 Ashton pieces 
which should be in the reper- 
tory. A national ballet owes 
this to its dancers and audi- 
ences: the Ashton heritage Is 
no less important than, say, 
the works of Benjamin Britten, 
and Ashton must be accounted 
one of our greatest lyric poets. 

Thursday night's first pro- 
gramme brought a revival and 
re-decoration of Daphnis and 
Chloe, the return of La Valse 
and Symphonic Variations, and 
duets from Sylvia and Birth- 
day Offering, works spanning 
12 great Ashtonian years, 
1946-58. The evening was the 
victim of injuries: four princi- 
pals, among others, were 
replaced. It is far this reason 
that I am reluctant to say 
much about Symphonic Varia- 
tions, which looked studied 
rather than spontaneous. 
Because this work has been 
elevated to the status of a 
sacred text, it is too often 
danced as if its cast were in 
church. Bruce Sansom in the 
leading male role was fine: the 
rest of the cast looked tenta- 
tive. They might adopt some of 
the freedom and sense of giv- 
ing themselves to the pulse of 
the music which made the 
opening La Valse look so hand- 
some as Ravel's whirlwind 
bore its couples along. 

The two pas de deux made 
me long for the entire ballets 
from which they were 
extracted. Birthday Offering 
was, in 1956, a loving portrait 
of the company’s seven balleri- 
nas in the year of its silver 
jubilee. (I wish I thought that 
the present troupe could field 


seven such varied and fascinat- 
ing artists). At the heart of it, 
of coarse, Margot Fonteyn and 
her cavalier, Michael Somes. 
On Thursday, Lesley Collier 
and Jonathan Cope gave the 
duet its proper grace. Collier 
has wit and the proper under- 
standing of Ashtonian nuance, 
and Cope is a handsome part- 
ner. the piece was alive. 

The Sylvia duet - one of 
Ashton's most brilliant and 
demanding creations for Fon- 
teyn and Somes - did not look 
happy with Viviana Durante 
and Irek Mukhamedov. Muk- 
hnm ednv has the power the 
dance needs, though he makes 
it seem more Bolshoi-like than 
heretofore. Durante seemed 
flustered by intricacies that 
Fonteyn played with a deli- 
cious and understated amuse- 
ment in what Ashton had set 
her to do. But the duet whets 
the appetite: we really must 
have the whole ballet restored 
to the stage with its ravishing 
designs by the Ironside 
brothers. 

D aphnis and Chloe 
has been long 
over-due for 
return. Now it is 
back, with new 
design by Martyn Bainbridge 
replacing John Craxton’s origi- 
nal decoration. The initial 
Impression of Bainbridge 's 
work is excellent His perma- 
nent set is of creamy stone 
walls with a distant landscape 
shimmering through horizon- 
tal lines which mask the back- 
drop. The costuming is time- 
less yet suitably archaic. In 
natural-coloured linen and 
wool for the villagers, rather 
more conventionally piratical 
for Bryaxis and his crew. I 
think it a miscalc ulati on to use 
an obviously theatrical moon 
and tinseOy stars for the pirate 
scene, and to make the last act 
sea like a dowager’s sequinned 
bosom glittering all-too- 
brightiy in the morning light 
These seem trumpery when 
contrasted with the earlier apt- 
ness of the design. 

The Chloe of Trinidad Sevil- 


ARTS 



Trinidad Sevilliano and Stnart Cassidy in 'Daphnis and Chloe’ Munir umr 


lano - a replacement for an 
injured Sarah Wildor - was 
deliciously soft in outline and 
tender in manner, and the 
character lived. So did Stuart 
Cassidy’s Daphnis. happily 
combining innocence and pas- 
sion. Lykanion and Dorkon, 
who must tempt the young lov- 


ers, were given first sketches 
by Benazir Hussein and Adam 
Cooper, but the pirate Bryaxis 
needs a far weightier presence 
than Matthew Hart’s physique 
can bring - the part cries out 
for Mukhamedov. This is. 
nonetheless, a welcome 
revival. Let it he the precursor 


of much more Ashton - and 
MacMillan - restored to the 
stage: their work is our 
national ballet’s treasure, and 
identity. 


Dap/mis and Chloe sponsored 
by the Robert Gavron Charita- 
ble Trust 



Detail of photopiece ‘Stigmata’, by Naomi Dines 


Breda hosts the art of youth 


G erminations, a European bien- 
nale for young artists, was set 
up in toe early 1980s under the 
aegis of the Office Franco-AUe- 


mande pour la jeunesse. The UK joined in 
almost at once, followed by the Nether- 
lands, and so it has continued to grow 
until in this, its eighth recurrence, some 
15 countries are taking part 

Such growth speaks not just of a practi- 
cal success, but of a wider recognition of 
the cultural and educational opportunity 
that Germinations represents. The argu- 
ments make themselves: the focus upon 
youth and education; pan-european 
cooperation extending across the commu- 
nity into the former communist bloc; all 
the cultural opportunities that follow, of 
mutual experience exchange. 

Yet what the European Commission giv- 
eth, the European Commission taketh 
away, and this time, late in the day, the 
funding was withdrawn. To criticise this 
Breda Germinations for the absence of 
those workshop programmes, whereby 
participating artists from different coun- 
tries would have been given the chance to 
work abroad together at selected centres 
in the months before the actual exhibition, 
is therefore no criticism of Germinations 
itself. The point was acknowledged by the 
administration, and confirmed by the art- 
ists, who certainly foil deprived. 

The immediate reinstatement of these 
workshops is already the declared priority 
for Germinations 9. Where the money will 
come from, however - the Commission; 
the national finding bodies; private spon- 


sorship? - is unclear. The pity is that the 
sums are still comparatively small 
Has Geminations itself become too big? 
Sixty-four artists are represented, a hand- 
ful from each country which inevitably 
blurs what might be national characteris- 
tics into individual quirks and interests. 
With funding secure, would a more fre- 
quent programme be better, allowing a 
reduced and rolling permutation of the 
member nations rather than all aboard, 
every time? Perhaps. 

The work itself is what is to be expected 

William Packer reviews 
the European biennale 
show, ‘Germinations’ 


of any recent student generation, an 
avant-garde orthodoxy in both range of 
practice and content There is enough here 
of the beautiful, intriguing and well-made 
to remain encouraged. It is only the nar- 
rowness of the range of preoccupation, the 
stultifying assumption that art must be 
idea-led rather than more intuitively 
responsive to the world, that is so sad. 

Here, then, are some film and video, 
some print installations, both conceptual 
and theatrical, and a lot of well-made 
abstract sculpture. There is also some 
painting on canvas, almost all of it 
abstract and some of it very good. Such is 
the currency of art schools, not just in the 
UK but across Europe. But for anything 


direct and competent in its relation to 
nature, most of all to the figure, we look in 
vain. What little there is of figurative rep- 
resentation is embarrassingly inept 
That said, however, I would also say 
that the British contingent of eight artists 
was as strong as any, ranging from paint- 
ing, through sculpture, to conceptual 
installation. Two of the painters were out- 
standing - Lynn Flavell with her elegantly 
abstracted pattern-fields derived from piles 
of fruit; and Sophie Benson, whose large, 
delicately worked and spatially ambiguous 
drawings deservedly won her the special 
bursary. The sculptor too, Naomi Dines, 
had made some quite extraordinary 
things. She is obsessed by tack and tackle 
of all kinds, as might be found on boats or 
horses, or in the surgery - odd splints, 
supports, restraints, all beautifully made 
in leather and hung with an off-hand delib- 
eration upon the wall. Of the rest I liked 
the sinister chair-figures of Klara Klose 
(Czech), Catherine Harang’s metal struc- 
tures (France), Petra Ondretckova’s 
painted relief perspective (Czech) and 
Katarina Din corn's prawn-like wire crea- 
tures. dancing on springs. Barbara Kowal- 
czyk (Poland), with her parcels of pigment 
on shelves and window-sills, won the Bou- 
daille Prize as best artist in the show. 


Geminations £ the St Joost Academy and 
the De Beyerd Contemporary Art Centre, 
Breda, The Netherlands, until December 
4. Supported by the Commission of toe 
European Community, Brussels, and by 
individual national organisations. 


Music in London 

Schnittke Series 


I n this, his 60th birthday, 
Alfred Schnittke’s posi- 
tion as the natural succes- 
sor to Shostakovich as 
Russia’s leading composer 
scorns unassailable. Schnittke 
festivals are on the increase, 
his discography is - for a seri- 
ous contemporary composer - 
massive, and his rate of pro- 
duction - especially given his 
precarious state of health and 
his need to make statements 
on a large scale - shows no 
sign of dwindling. For his 
admirers, he is as much moral 
inspiration as pure musician: 
they speak passionately of his 
work’s overwhelming emo- 
tional intensity and of bis giv- 
ing voice in dark and danger- 
ous times to the soul of an 
oppressed Russian people. 

These are strong claims, but 
are they justified by the musi- 
cal reality? Do the ends - the 
powerful communication of 
non-musical truths - justify 
fha means? Can we turn a deaf 
ear to toe relative crudity of 
Schnittke's techniques, not 
least his juxtapositions of 
avant-garde ^ quota- 
tions from the whole gamut of 
musical history? Or should we 
expect more from a composer 
of his stature than a language 
in which toe ideas behind the 
music are more important than 
the music itself, and in which 
the actual notes dissolve into a 
rhetoric whose only raison 
dVde seems to be dictated by 
the composer’s own freely 
associating anxieties? 

“Perhaps” and “sometimes” 
may be the answers, but not, I 
think, an the basis of the three 
Schnittke pieces given exem- 
plary performances by the Lon- 
don Sinfonietta in the op ening 


concert of the Barbican Cen- 
tre's Schnittke Series on Fri- 
day. The shortest, Three by 
Seven, proved a slight, rather 
dry and schematic exchanges 
between harpsichord and 
instrumental ensemble. 

The earliest, Quasi una 
sonata of 1987 for violin and 
chamber orchestra, a rework- 
ing of his Second Violin Sonata 
of 1968, was a typical head-on 
collision between sounds from 
the 1960s avant-garde and 
quotes from Beethoven and 
Brahms, which ignores the 
purely musical implications of 
Its material in favour of hollow 
gestures and temper tantrums. 

The most recent. Five Frag- 
ments on Pictures by Hierony- 
mous Bosch, receiving its 
recourse to rudimentary melo- 
dy-plus-chords textures, 
sounded dangerously under 
composed. 

Ironically, it was the work of 
two of Schnittke's compatriots 
which offered the main musi- 
cal interest of the evening. Life 
without Christmas - Day rime 
Prayers by Giya Kancheli was 
a gentle, Goreckian meditation 
for clarinet and ensemble, 
capped by the arrival of a hoy 
soprano to sing a Latin prayer. 
More striking was Alexander 
Rasfcatov’s Xenia, another deli- 
cate. meditative work, evolving 
logically from shimmering tin- 
tinnabulations and revealing a 
fine ear for subtle shifts of col- 
our, new orchestral sonorities 
and some appealingly quirky 
changes of direction. 

Antony Rye 


The Schnittke Series continues 
at the Barbican Centre tonight 
and November 17. 


Chung conducts 
the Philharmonia 


T he London Philhar- 
monic's concert at the 
Festival Hall on Satur- 
day featured standard 
composers - Beethoven, Schu- 
mann. and Brahms - in a stan- 
dard overtur e-concert o-sym- 
phony format All of the works 
complement perfectly the art 
on show at the South Bank's 
Deutsche Romantik exhibition, 
but only first-rate perfor- 
mances would have justified 
such a routine programme. 

But then, the evening was to 
have been conducted by Klaus 
Tennstedt, the orchestra's con- 
ductor laureate and one of the 
great exponents of this reper- 
tory. His recent retirement due 
to ill-health from the concert 
platform is a not-unexpected 
blow to the orchestra, already 
in the process of losing its 
music director, Franz Welser- 
Mflst 

Tennstedt was replaced on 
Saturday by Myung-Whun 
Chung, a relative stranger to 
London but one who had the 
conductor-watchers out in 
force: his ousting last month 
from his post as music director 
of the Opdra-Bastille in Paris 
makes him a possible candi- 
date for either of London’s rud- 
derless orchestras (the job at 
the Philharmonia befog open 
too). But perhaps our cash- 
starved orchestras will find 
him too expensive: on the sur- 
face of a complicated battle of 
artistic wills fo Paris, it was 
Chung’s financial demands 
that made him the first victim 
of cost-cutting measures by the 
Bastille's director-designate, 
HuguesGalL 

Chung ban been an acknowl- 


edged force for artistic good in 
Paris. He is widely credited 
with having raised the stan- 
dards of the Bastille orchestra, 
but here - In works that 
demand the individual stamp 
of a conductor - he came 
across like any other general- 
ised super-maestro. Uncharac- 
teristically, he allowed some 
undisciplined playing in a per- 
formance of the Leonore No. 3 
overture that did not really 
bang together coherently. 

Schumann’s Piano Concerto 
in A minor - the epitome of 
German Romanticism, or at 
least of its more wholesome 
aspects - was much more suc- 
cessful Chung proved a sensi- 
tive accompanist to Maurizlo 
Poilini. and together they 
shaped a performance (till of 
Romantic spontaneity but free 
of mannerism. Pollini’s distin- 
guished playing brought 
reminder — if reminder were 
needed - that he has tew 
equals in this repertory. His 
virtuosity remains hut one of 
the tools of his glowing, poetic 
pianism. 

Tennstedt 's absence was 
keenly felt in the Brahms Sym- 
phony No. L Chung conjured 
up an appropriately warm 
sound but no Brahmsian incan- 
descence, and the playing 
lacked cultivation. The blazing, 
affirmative finale was impres- 
sive, though not enough to 
make this an interpretation 
real stature - a commodity 
which, after recent experiences 
with its music director, the 
London Philharmonic should 
now be seeking above all. 

John Allison 


(continues till Nov 28): Nethertands 
Opera presents Louis Andriesson’s 
new work Rosa, with scenario and 
production by Peter Greenaway 
(020-625 5455) 


■ ANTWERP 

de Vfaamse Opera Tonight final 
performance of Yevgeny Onegin, 
staged by Adolf Dresen and 
conducted by Stefan Sottesz. The 
production moves to Ghent for four 
performances, opening on Sun 
(03-233 6685) 

■ AMSTERDAM 


■ BRUSSELS 

Mormate Tonight, tomorrow, Thurs, 
Fit Philippe Boesmans’ acclaimed 
1993 opera Reigen, based on 
Schnitzler’s play la Rondo. The 
production is by Luc Bandy and the 
cast includes SoJveig Kringelbom, 
Franz-Fenflnand Nentwig and 
Lucinda Chads. There will also be 
performances at the Chateiet In 
Paris on Nov 25. 26 and 27 (02-218 
1211 ) 


m CHICAGO 

MUSIC 

CWcago Symphony Antonio 
Peppano conducts works by Britten, 
Cbausson and Copland on Thurs, Fri 
afternoon. Sat and nod Tues, with 
mezzo soloist Florence Qufvar. 

Pierre Boulez will conduct four 
different programmes between Nov 
25 and Dec 17 (312-435 6666) 

Lyric Opera This month's 
productions are Strauss’s Capriccio, 
Rossini's II barbiere di ShrfgKa and 


Conceitgebouw Tonight Hartmut 
Haenchen conducts 
Philharmonic Orchestra and Chorus 

fo symphontes by and 

Mahler. Tomorrow, Thurs, Fri: Kurt 
SanderCng conducts Royal 
Concertgebouw Orchestra in . 
Beethovenvrd Schubert, with piano 
sotoist Mttsuko L/cWda. 

P<teine ZOal): GustevLBontorat 

harpsichord recital. Thurs (Wejne 
7aan- Tabaa Zimmermann ivfota 
recital. Sat afternoon: Arnold 
Ostman conducts concert 
performance of BoethovwVs 
Leonore, wfth cast headed by 
Hubert Delamboye, Hinevi 

Marflnpelto and David 

Pfttman-Jennings. 

HandeTs M*snah. Sal 

Atexey Lubimov P^ u recrt S^2!l trtl 

morning: Radio 


piano soloist Imogen Cooper . 

(24-hour inf °nnatot^Vto0tt2O-6 75 
4411 ticket reservations 020-671 

8345) 


Sweater. Thurs, Sun afternoon 



Bernstein’s Candida. Capriccio 
(tonight and Sat continuing tiJJ Dec 
5) la conducted by Andrew Davis 
and staged by John Cox, with 
Felicity Lott as the Countess. 
Frederica von Stade, Thomas Allen 
and Rockwell Blake star in the 
Rossini (final performance of this run 
tomorrow), and Candida opens on 
Nov 26 fo a production by Harold 
Prince (312-332 2244) 

THEATRE 

• The Sisters Rosensweig: the 
national touring production of 
Wendy Wasseretein’s hit Broadway 
comedy about the mid-life reunion 
of three Jewish sisters from 
Brooklyn (Shubert 312-902 1500) 

• Laughter on the 23rd Floor: Neil 
Simon's newest comedy, about the 
golden days of live TV comedy, is 
currently enjoying an open-ended 
run (Briar Street 312-348 4000) 

• Angels in America* Tony 
Kushnerts two-part epic is directed 
by Michael Mayer, with Jonathan 
Hadary as Roy Cohn (Royal George 
312-988 9000) 


■ ROTTERDAM 

De DoeJen Tomorrow, Thurs, Fri: 
Eduardo Mata conducts Rotterdam 
Philharmonic Orchestra in works by 
Strauss, Dvorak and Frank Martin 
(010-217 1717) 


■ geneva 

Com6dto Moscow's Vakhtangov 
Theatre, directed by Piotr Fomenko, 
presents Ostrovsky's The Guilty 
Innocents dally till Nov 26 (022-320 
5001) 


Grand ThdStre The Bartered Bride, 
staged by Elijah Moshinsky and 
conducted by Bohumil Gregor, can 
be seen tonight, Fri and next Mon, 
with a cast headed by Valentin 
Proiat, G wynne Geyer and Kristinn 
Sigmundsson (022-31 1 2311) 
Victoria Hail Yevgeny Svetlan ov 
conducts the Suisse Romande 
Orchestra on Nov 22 
and 25(022-311 2511) 


■ LAUSANNE 

Theatre Municipal Thurs: 
Jean-Ciaude Casadesus conducts 
first night of Jean-Claude Auvray’s 
new production of Un ballo in 
maschera, with cast including Gino 
Quilico and Lillian Watson. Repeated 
Nov 20. 22. 24, 27 (021-312 6433) 


■ VIENNA 

0 A new production of 
Pirandello's The Mountain Giants, 
directed by Giorgio Strehler, opens 
tonight at the Burgtheater. Next 

performances are Nov 19, 2Q, 23, 

25, 28 and 29 (514440) 

0 Walter Weller conducts the 
Royal Scottish National Orchestra at 
the Musikverein tomorrow, Thurs 
and Fri. The programme for the first 
two concerts consists of works by 
Janacek, Grieg and Tchaikovsky, 
with piano soloist Bella Davidovich. 
The concert on Fri includes works 
by Britten and James MacMillan. 
Carlo Maria Giulini conducts the 
Vienna Philharmonic in Schubert and 
Brahms on Fri afternoon, Sat 
afternoon and Sun morning. Okko 
Kamu conducts the Copenhagen 
Philharmonic on Sal evening in 


Gade, Chopin and Nielsen, with 
piano soloist Eisabeth Leonskaja. 
Dec 5: Jos6 Carreras (505 8190) 

• Vienna's contemporary music 
festival, Wien Modem, runs till Nov 
28, with daily performances at 
various venues around the city. This 
year’s featured composers are 
Morton Feldman. George Crumb, 
Helmut Lachenmann, Kart Schiske 
and Gunter Kahowez (7124 6860) 

• The State Opera is closed for 
technical alterations till Dec 14 
(51444 2959/51444 2969/513 1513) 


■ WASHINGTON 

KENNEDY CENTER 

• This week's National Symphony 
concerts are conducted by Zdenek 
Macai and Hugh Wolff. In tonight’s 
programme, soprano Alessandra 
Marc sings selections from Aida. On 
Thurs. Fri afternoon and Sat, Ivan 
Moravec is soloist in Schumann's 
Piano Concerto (202-467 4600) 

• Washington Opera's repertory 
this month consists of Gounod's 
Faust and Mozart's Le nozze di 
Figaro. Jianyi Zhang sings the title 
role in Faust. The Mozart cast 
Includes Jeffrey Black and Yvonne 
Kenny (202-467 4600) 

THEATRE 

• Otabenga: world premiere of 
John Strand's play based on the 
true story of a journey through 
America at the turn of the century. 
Opens tonight (Signature Theater 
703-820 9771) 

0 Someone Who’ll Watch Over 
Me: Irish playwright Frank 
McGuiness’s humorous and 
poignant drama about three Beirut 
hostages. Till Dec 11 (Studio Theater 


202-332 3300) 

• Tom Stoppard trilogy: 
Washington Shakespeare Company 
presents The Real Inspector Hound, 
The 15-minute Hamlet and Dirty 
Linen. Till Dec 17 (Gunston Theater 
703-418 4808) 

• Two Trains Running: August 
Wilson's Pulitzer Prize-winning play 
is set in 1969 In Pittsburgh during 
toe dvfl rights era. Tin Dec 18 
(Center Stage 410-885 3200) 

• Artificial Jungle: the last play 
written by the late Charles Ludlam is 
a spoof on marriage in jeopardy. TiU 
Dec 4 (Woolly Mammoth 202-393 
3939) 


■ ZURICH 

Opemftaus Tonight, Fri, Sun 
afternoon: choreographies by Be, 
Bienert and Van Manen. Tomorrow: 

II barbiere dl Siviglia with Vesselina 
Kasarova. Thurs, Sun afternoon: 
Serge Baudo conducts Bernard 
Uzan's production of Gounod's 
Romdo et Juliette, with Isabelle Rey 
and Francisco Araiza Sat Die 
Zauberflfiie. Nov 27: first night of 
new production of Die Frau ohne 
Schatten (01-262 0909) 

TonhaDe Tomorrow: Marcello Vrotti 
conducts Ton halls Orchestra In 
works by Mozart and Beethoven. 
Thurs: Hagen Quartet plays string 
quartets by Schumann, Mozart and 
Schubert Fri: Viotti conducts 
Schnittke and Beethoven, with piano 
soktist Peter Waters. Sun: Howard 
Griffiths conducts Zurich Chamber 
Orchestra fo Schemer, Mozart, 
Beethoven and Prokofiev (01-261 
1600) 


ARTS GUIDE 

Monday; Baffin, New York and 
Paris. 

Tuesday; Austria, Belgium, 
Netherlands. Switzerland, Chi- 
cago, Washington. 
Wednesday; France, Ger- 
many, Scandinavia. 

Thursday: Italy, Spain, Athens, 
London. Prague. 

Friday: Exhibitions Guide. 

European Cable aod 
Satellite Business TV 

(Central European Time) 
MONDAY TO FRIDAY 
NBC/Super Channel: FT Busi- 
ness Today 1330; FT Business 
Tonight 1730. 2230 

MONDAY 

NBC/Super Channel: FT 
Reports 1230. 

TUESDAY 

Eursnews: FT Reports 0745, 
1315, 1545, 1815, 2345 

WEDNESDAY 

NBC/Super Channel: FT 
Reports 1230 

FRIDAY 

NBC/Super Channel: FT 
Reports 1230 

Sky New® FT Reports 0230, 
2030 

SUNDAY 

NBC/Super Channel: FT 
Reports 2230 

Sky News: FT Reports 0430. 
1730; 



FINANCIAL TIMES TUESDAY NOVEMBER l? 


A £2bn bid for a military 
helicopter contract; a 
recipe for vitamin-en- 
riched bread: and a 
trade union federation’s devel- 
opment fund: all are part of a 
new national mission in South 
Africa, the Reconstruction and 
Development Programme 
(RDP). 

With the death of both apart- 
held and the socialist vision of 
the African National Congress, 
the RDP is being promoted as 
the country's path to political 
stability and economic growth. 

It is now so powerful and 
pervasive a feature of South 
African life, that scarcely any 
large initiative, in the private 
or public sector, is launched 
without ritual reference to the 
plan. 

International donors talk of 
promoting the programme, the 
corporate sector spells out how 
its plans gej with the RDP's 
goals, and educational institu- 
tions frame their mission in 
terms of developing the neces- 
sary human capital to imple- 
ment the RDP. 

However, behind this enthu- 
siasm lies widespread confu- 
sion over exactly what the pro- 
gramme involves. 

Most people would probably 
say the RDP was primarily a 
state-sponsored initiative to 
provide jobs and bouses for tbe 
very poor - casting an eye at 
the R37.5bn over five years 
that the government has bud- 
geted to promote everything 
from school feeding schemes to 
uew water plants in rural 
areas. 

But important though these 
high-profile initiatives are. 
they are only part of a much 
larger programme. The white 
paper on the RDP. recently 
presented to parliament, sets 
out the programme's five broad 
goals as meeting basic needs, 
such as jobs, land and housing; 
developing human resources 
through education and train- 
ing: promoting economic 
growth: completing the democ- 
ratization process; and estab- 
lishing the government struc- 
ture and capacity to implement 
these aims. 

As Mr Jay Naidoo. the minis- 
ter without portfolio who has 
Lhe task of overseeing the pro- 
gramme. is fond of pointing 
out. the RDP is intended to do 
more than build a few extra 
schools and clinics. 

"it is nor a set of ad hoc 
projects on the ground." he 
said last month. "It is not 
about government centralising 
power in its own hands. It is 
about the fundamental trans- 
formation of government and 
society." 

The economic policies that 
are being adopted to meet 


Statement 
of intent 

Mark Suzman on Pretoria’s 
ambitious economic programme 


South-Africa; mission impossib 



these alms have been widely 
applauded both domestically 
and abroad. Although the pro- 
gramme includes several state- 
led initiatives, the bulk of the 
RDP will be driven by the pri- 
vate sector. 

The commitments to nation- 
alisation and socialist policies 
that infused earlier drafts of 
the progr amm e, when it was 
part of the ANC's electoral 
campaign, have been jetti- 
soned. So. too, have the refer- 
ences. side-by-side, to free 
enterprise, frugality and high- 
spending: inflationary policies. 

The ANC-led administration 
has instead committed itself to 
cutting the budget deficit, is 
pushing ahead with privatisa- 
tion. and has proven highly 
supportive of the Reserve 
Bank's unpopular policy of 
high interest rates - aimed at 
keeping a rein on inflation. 

Indeed, the new government 
has become so staunch a 
defender of economic discipline 
that it has been charged by 
some of its constituents with 
being too right wing. 

Deputy Finance Minister 


Alec Erwin’s response to these 
charges has been that ‘'fiscal 
and monetary discipline as an 
instrument to achieve objec- 
tives may mean that. like [for- 
mer UK prime minister] Mrs 
Thatcher, we use a stove to 
cook a meal, but ours is a very 
different meal: it is one that we 
all will share and enjoy the 
quality of the cooking." 

W hile such high 
hopes for the 
gains from eco- 
nomic discipline 
are thought to be realistic by 
many observers, they worry 
that other elements of the RDP 
may not be. The white paper s 
commitment to increasing civil 
service productivity and cut- 
ting the number of state 
employees appears Herculean. 
A recent analysis by the 
Johannesburg-based Centre for 
Policy Studies concludes that, 
given the pressure on the gov- 
ernment to deliver improved 
conditions and the difficulty of 
retrenching white bureau- 
crats. meeting these goals is 
likely to prove impossible. 


Even more problematic is 
the question of project imple- 
mentation. dealt with only 
briefly iu the white paper. 
Local authorities are to be 
given a management role in 
everything from the provision 
of houses to new schools. In 
practice, however, local gov- 
ernment remains chaotic in 
much of the country as a result 
of widespread rent and service 
boycotts: establishing effective 
local government structures 
could take years. 

"The RDP at this stage is 
very abstract. It deals with the 
framework but not delivery." 
said Mr Frederik van Zyl Slab- 
bert. responsible for the run- 
ning of local government elec- 
tions planned for next year. 

It is the idealism that under- 
lies the programme that seems 
to have generated this weak- 
ness. as well as the pro- 
gramme's strengths. 

The RDP is essentially a rev- 
olutionary plan drawn, up by a 
new government with a burn- 
ing vision of the country it 
wants to build, and a strong 
desire to deliver tangible 
results from the destruction of 
apartheid: hence the broad 
scope of the RDP, and its adop- 
tion as a national crusade by 
ali the political parties in gov- 
ernment. 

Rather than being a policy 
document over which political 
opponents disagree, the RDP 
has become a statement of 
aims within which most policy 
disputes are taking place. Thus 
the debate on interest rates is 
framed as a discussion over 
whether higher interest rates 
will promote the RDP. 

The same is true in business. 
During a recent car industry 
strike, employers defended 
their low wage offers as neces- 
sary' to free funds for capital 
expenditure in support of the 
RDP. while workers' organisa- 
tions argued that under the 
RDP they should be receiving 
improved training and better 
conditions. 

The programme's elevation 
to national mission has also 
raised the prospect that those 
who stray from its premises 
will be purged. There have 
already been calls for various 
senior civil servants to be dis- 
missed for being "anti-RDP": 
an official at the Development 
Bank of South Africa was fired 
following charges that he tried 
to sabotage tbe programme. 

However, the government 
seems under no illusions about 
what will ultimately determine 
the success of the RDP. It is 
economic growth that will 
make or break the programme. 
The danger will lie in trying 
to deliver too much too 
soon. 


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Joe Rogaly 


Virtually real democracy 



You are sitting 
at home, your 
hand near the 
remote con- 
trol device. 
A convicted 
murderer's face 
appears on the 
screen, top 
right corner. A voice asks 
whether the miscreant should 
or should not be executed. The 
text alongside reinforces the 
spoken message; “To have your 
say. simply press Y or N." The 
unpleasant details of the kill- 
ing. some recreated by com- 
puter imagery, have just been 
replayed for what seems like 
tbe thousandth time. You are 
re min ded that if the public-ac- 
cess vote is “Y" the supreme 
penalty will be exacted, in full 
view, just after the dinner 
hour. You reach across your 
snack tray and pick up the 
remote . . . 

The above little scene, some 
may protest, is a sub-Orwellian 
nightmare, unworthy of seri- 
ous attention. Oh yes? Even in 
California'' Sophisticated folk 
like us know that true democ- 
racy’ is a nonsense. It is the 
rule of the mob. Elites - that 
is. you and I - manage to stave 
off the min dless tyranny of the 
majority by a variety of means, 
the most effective of which is 
the pretence that periodic elec- 
tions decide matters of impor- 
tance. Modern government, 
even in its m inim alist form, is 
so complicated that it would be 
impossible to consult the vot- 
ers at every turn. 

Not so. Technology that 
could make the largest of coun- 
tries function like a parish 
meeting already exists. In its 
most advanced form - a multi- 
media box connected by tele- 
phone line to everywhere - the 
necessary gadget ry is likely to 
become commonplace in mid- 
dle-class homes by. shall we 
say. the turn of the century. 
Mr Bill Gates, chairman of 
Microsoft, indicated yesterday 
that his company proposes to 


sell software that puts buyers 
in touch with catalogues, pur- 
veyors of financial snake-oil. 
electronic libraries, and that 
great stimulant of so many of 
our imaginations, the Internet 
Mr Gates has made a huge suc- 
cess of Windows, the program 
that enables newcomers to 
understand computers. He 
might do well with his Micro- 
soft Network. 

It is not evident that he has 
political applications in mind, 
but that makes no differ ence. 
Politics is already entwined in 
the Net. In the 1992 presiden- 
tial election Mr Ross Perot 
promised electronic plebiscites. 
Last year President Bill Clin- 
ton stage-man- 

aged an “elec- 
tronic town 
hall", although 
without voting 
rights. His 
vice-president 
is starry-eyed 
about the 

whole business. 

If you have the 
necessary hard- 
ware you may 
embark on a 
virtual reality 
tour of the White 
Sophisticated 


Technology that 
could make the 
largest of 
countries 
function like 
a parish 
meeting already 
exists 


House, 
chip-based 
devices were deployed in last 
week's mid-term elections, the 
ones in which the Democrats 
were so thoroughly worsted. In 
Minnesota candidates for the 
Senate conducted an on-line 
debate. Computer-access public 
interest groups have been 
established in Oregon. Ohio, 
Illinois. Florida and elsewhere. 
They are available on the 
World Wide Web. which can 
transmit text, moving pictures 
and sound. 

In California, nearly every 
candidate spent part of his or 
her campaign funds on digitis- 
ing their messages. A nasty 
proposition, number 187, was 
overwhelmingly approved. It 
denies public services to illegal 
immigrants. Last year some 
Californians supported 


attempts to have TV camera®: 
present at executions. Software 
companies have invented ways 
of identifying electors at their 
home screens, although it . is 
not clear how this kind of elec- 
tronically screened vote could 
be kept secret Yet add it all up , 
and my opening paragraph 
becomes less fanciful.- Wired 
democracy is a popular notion. 
No wonder Mr Newt Gingrich, 
leader of the Republicans in 
the lower house; remarked 
after his party’s recent victory 
that every MU or committee 
report filed in Washington 
would be put on line. 

It is important to keep hold 
of actual reality. Browsing 
: through Pro- 
file, the FT’S 
on-line library, 
I read that 
some 20-30m 
personal com- 
puters, in at 
least half the 
world's coun- 
tries, are 
linked to the 
Internet. Yet 
the most 
advanced tech- 
oology is prob- 
ably possessed by say, between 
2m and 3m PC owners. That 
probably defines the number of 
Americans who logged on to 
candidates' literature during 
the mid-term elections. Could 
it be that the Net is just 
another device for whiling 
away the long night hours? We 
have waves of the future come 
and go; none has yet drowned 
us. Satellite TV. cable, fibre-op- 
tics. the fax the cordless tele- 
phone have been subsumed 
into our lives: none has 
become predominant 
That said, I am not so sure 
that the gathering wave of 
“electronic democracy” will 
recede. Voters everywhere are 
disillusioned with established 
parties and politicians. The 
temptation to travel back to 
andent Athens via one of Mr 
Gates's icons may be irresist- 


Thlfy ‘In ' Britain 'VarijQus ftifafr 
tanks! and pressui-e.groujs 
have worried at file- edge ; of 
the prattent without reacMsgC; 
much of a -- conclusion. 7 . J&m : .. 
Democrat#, . a painphlet . pifl> 
lished by Demorinthe sum- 
mer, discusses participatory 
models of wired deci^o^^Ek- 
ing. “It is Ufeely-to.-take many' 
years of es&erimeirt-. .. to ffis- • 
cover which methods df .using 
technology entail " winch 
effects;” the prudent authors ' 
say, - V v- : ; •■-“V 1 • 

A discussion oh referehdums 
organised by. Charter STa^few 
weeks back could be s tmimm 
isedasajndud^thmttey 
are all right if limited to consti- 
tutional issuea or IcfeafTnat- ' 
ters. Demos, Charter SR and 1 
the Labour-leaning Institute ' 
for Public -Policy Research 
have all discusked dozens' ' 
juries, groups of puhQc^piritied - 
individuals who are prepared - 
to sit and listen to profesriohr 
als before pronoimtingonthe 
merits of this or'that policy. 
The IPPR / booklet. Citizens' 
Juries, by John Stewart," Eliza- 
beth Kendall and Anna Coote 
was published last Thursday. It . 
describes' experiments in the. 
US and Germany and proposes 
a trial, run in Britain. ■ ' - 
Why not? An electronic ref- 
erendum is a dangerous idea. 
Voters would decide on the 
basis of no knowledge, and 
flashy sound-bites. The poor 
may not have access to com- 
puters. Putting a citizens’ jury 
on. TV or an interactive net 
might be more attractive, if 
you could be certain that tbe 
participants paid attention. 
Meanwhile, we should think. 
The first picture of an Apple 
PC in the FT appeared in tbe 
late 1970s. It showed a child at 
the screen. Now grown up. she 
has presented me with a sub- 
scription to the Internet That 
is how far home computing has 
travelled in about 16 years. We 
will experience the politics of 
this device well before another 
16 have passed. 


LETTERS TO THE EDITOR 

Number One Southwark Bridge, London SE1 9HL 

Fax 071 873 5938. Letters transmitted should be clearly typed and not hand written. Please set fax for finest resolution 


The worst of all worlds 


from Mr Oleh Havrylyshyn. 

Sir. In his article "Painful 
rebirth from the ashes" 
(November 111, Anthony Rob- 
inson makes some valuable 
points about how much has 
been achieved by former com- 
munist countries in the transi- 
tion from central planning to 
market economy, and how this 
is already giving pay-offs. It is 
useful to have such a “half-full 
glass" perspective on the still 
difficult process of change in 
these countries. 

However. I would take issue 
with Robinson’s too-simple 
analog)’ between the capital 
amassed there in recent years 
through “often clandestine 
expropriation and export of 
raw materials, energy and 
other resources" and the US 
and European robber baron 


equivalents in the 19th cen- 
tury. 

The 19th century monopo- 
lists did not. on the whole, 
make their fortunes with file 
help of a highly interventionist 
government US and European 
economies, while not paragons 
of free markets, were generally 
open, competitive economies, 
with free price-setting, very 
low government budgets (gen- 
erally balanced) and a prudent 
money-creation environment. 
The transition economy robber 
barons base their profits on 
privileged access to Low-priced 
materials, substantial and 
cheap credits, trade licenses 
(hence monopoly rights), and 
so on. The big difference there- 
fore is that today's robber bar- 
ons have become strong propo- 
nents of retaining the 


administered and distorted sys- 
tem that is neither central 
planning nor an open competi- 
tive market. For them, this, is 
the best of both worlds, mid 
they have plenty of influence 
to fry to keep things that way. 
For the population at large, 
this partial step to the market 
is the worst of both worlds. 

It will not automatically hap- 
pen that the accumulated capi- 
tal (much of it abroad) will be 
reinvested in these economies. 
It will require a strong-willed 
leadership to break the system 
of interventions, create a com- 
petitive, open-market environ- 
ment - and thereby attract 
back this amassed capital 
Oleh Havrylyshyn, 
alternative executive director. 
International Monetary Fund, 
Washington DC 20431, US 


Bureaucracy 
in Brussels 

From Mr Paul Cohn. 

Sir, Having read the article 
by Emma Tucker about her 
experiences with Brussels 
bureaucracy (Perspectives: 
"Welcome to Soviet Belgium", 
November 12/13), I can only 
feel sorry for her. 

However, being a Dutchman, 
who has lived in Germany. 
France, Belgium and the UK. I 
regret that my experiences 
with the authorities in the UK 
were by far the worst. This 
starts when you enter the UK 
and your car is thoroughly 
searched for an hour (although 
I have short hair), and it con- 
tinues when you want to have 
a residence permit. Maybe hav- 
ing an Indonesian wife does 
not help, but I have never felt 
as humiliated as when 1 waited 
in a queue outside the Home 
Office in Croydon at 6am - 
after a 2V, hour drive - only to 
be told several hours later that 
[ should have gone to my local 
police station, which had just 
sent me to Croydon the day 
before. 

So, not much different from 
Brussels, I fear. 

Paul Cohn, 

Singel 19. Blaricum. 

The Netherlands 


Greenpeace: 
role, but not 

From Mr Chris Rose. 

Sir. In her long article, 
"Campaigners all at sea" 
(November 12/13). Bronwen 
Maddox says Greenpeace has 
"campaigned itself out of a 
job”, because it has achieved 
"extraordinary success in 
changing the relationship 
between advanced industrial 
societies and the natural 
world". Sadly, we have to dis- 
agree. 

The "success" has been 
mainly confined to tbe estab- 
lishment of political conven- 
tions and increased under- 
standing - attitudes have 
changed but activities mostly 
have not. For the media the 
global environmental crisis has 
perhaps been eclipsed by the 
“environmental revolution" in 
the attitude or politicians and 
industrial public relations but 
this is change In appearances, 
not substance. 

Maddox cites the London 
convention on radioactive 
waste dumping, but Sellafield 
still pumps waste out to sea 
from land. Toxic waste dump- 
ing at sea has been banned. 
Yet waste is still legally dis- 
charged from land, dumped on 
land or incinerated. And, as 


a changing 
out of a job 

she says. 150 countries 
acknowledged global wanning 
at the Rio Earth S ummit yet 
carbon dioxide emissions are 
still set to rise. 

There is no international 
treaty to protect forests, even, 
on paper we are taking direct 
action to stop the Brazilian 
mahogany trade. The Montreal 
Protocol on protection of the 
ozone layer was incapable of 
forcing industry to adopt tech- 
nologies that did not use ozone 
destroying or global warming 
gases. This led Greenpeace to 
intervene in the market with 
“greenfreeze" refrigeration, 
instead of continuing to rely 
on the media and government 
instruments to deliver change. 

Maddox fairly describes 
some of the problems faced by 
environmental organisations in 
a more environmentally-aware 
world: we must change role 
from mainly identifying prob- 
lems to delivering change. But 
our task is to stop destruction, 
not just to draw attention to its 
most visible forms. 

Chris Rose. 

campaign programme director, 
Greenpeace UK. 

Canon bury Villas, 

London N1 2PN 


Marginalisation of Mediterranean countries 


From Mr Stephen C Calleya. 

Sir, Your assessment of 
Europe's future challenge In 
your editorial, “Europe's big 
challenge" (November 9). is 
accurate in indicating that the 
EU 1996 intergovernmental 
conference must contend with 
the assignment of furthering 
the integration experiment in 
the west and simultaneously 
spell out a plan for integrating 
the states of eastern and cen- 
tral Europe. 

But it surprisingly makes no 


mention of Europe's challenges 
on its southern flank. An anal- 
ysis of the ED’S recent docu- 
ment. Strengthening the Medi- 
terranean Policy of the EU: 
Establishing a Euro- Mediterra- 
nean Partnership, which pro- 
poses the creation of a free 
trade zone in the area, and a 
review of EU enlargement to 
include either Malta, Cyprus or 
Turkey, are absent. 

For the record, the EU now 
gives twice as much aid to 
eastern Europe as to the Medi- 


terranean. In the period 
1990-1994, the EU spent Ecu 
I.62Gbn ($2.07bn) on the Medi- 
terranean and Ecu 3.7Slbn on 
eastern Europe. 

Is this an indication of grad- 
ual marginalisation by Brus- 
sels of the Mediterranean, 
despite lip-service to the con- 
trary? 

Stephen C Calleya, 
department of politics and inter- 
national studies. 

University of Warwick, 

Coventry CV4 7AL 


Customs .... 
and Excise 
adds to 
burdens 

From Ms Carole Miacpherson, 
Sir, I read with great Interest 
Peter Norman's article on tbe 
first prosecution of a UK com- 
pany for failure to provide 
Intrastat returns (“Company 
fined over missing trade statis- 
tics", November 9). 

Dams International has my 
sympathy. I know only too well 
the additional burden which 
has been placed on UK busi- 
nesses by Customs and Excise 
with this latest statutory 
requirement 

However, the dosing com- 
ments by customs officials that 
the Intrastat system is “less 
burdensome than previously" 
is a little diffi cult to compre- 
hend. Certainly it is less bur- 
densome for Customs and 
Excise as the entire burden 
falls on UK businesses to col- 
lect these statistics. 

From our own experience, 
the investment in extra admin- 
istrative and systems develop- 
ment has had an all too real 
cost, which certainly does not 
fit in with the stated “savings 
to UK businesses of £135m". 

Surely Customs and Excise 
is referring to savings by cen- 
tral government, it having 
once again passed the onus for 
collection of tedious statistics 
to UK businesses? There are 
many further examples, includ- 
ing National Insurance and 
value added tax on private 
fuel etc. 

It is difficult for us to see the 
savings. 

Carole A Macpherson, 
financial administration 
manager, 

Akzo Nobel Coatings, 

135 Milton Park, Abingdon, 
Oxfordshire OX14 4SB 

Eligibility for 
EU funding 

From Ms Esther Knight 
Sir, I refer to the article 
“Grants are the remedy for the 
region's needs" (November 7). 
This stated that, concerning 
eligibility for European 
Regional Development Fund. 
“Telford and Stoke-on-Trent 
were not deemed to be in need 
any longer". This is not cor- 
rect. The position is that Tel- 
ford was previously eligible 
and continues to be so, and 
that North Staffordshire conur- 
bation, including part of Stoke- 
on-Trent, has obtained eligibil- 
ity for the first time. 

Esther Knight, 

European policy officer, 
Staffordshire County Council 
County Building. 

Martin Street, 

Stafford ST162LE 






Unsafe a; 


*»1- 


Aden’s 


't 



) . 





FINANCIAL TIMES 


TUESDAY NOVEMBER 15 1994 


FINANCIAL times 

iTm °73%nm T Wark Brid “- London SE1 9HL 
• 873 3000 Telex: 923IS6 Fax: 071-407 5700 

-Tuesday Novemher 15 1994 


Foreign policy 
gridlock 


Tlw first reaction of some Clinton 
supporters last Week, when the 
Democrats lost control of both 

52fS a + r F£ onsr6ss - Was to SU S- 
gest that from now on the presl 

concentrate on for^ 
pohcy. which has come to be seen 
as his greatest strength. 

That in itself is a remarkable 
development. BUI Hinton won the 
F™“ c y two years ago by argu- 
es *5 ^ Possessor spentSo 
much tune on foreign policy and 

2^X Jgb ,> 0n domestic 

problems. For most of the time 
since he has been portrayed as 
hopelessly inept and indecisive in 
foreign policy. Only latelv. as his 
domestic programme ground to a 
halt, has his foreign policy perfor- 
mance, notably in Korea. Haiti 
and the Middle East, begun to 
look a little better. 

It is also true that the balance of 
powers between president and 
congress is more favourable to the 
former in foreign than in domestic 
policy. But that is not saying 
much. Foreign policy involves 
spending money, and the presi- 
dent cannot spend money, even 
abroad, without congressional 
authority. The world was abruptly 
reminded of this last week when 
Mr Clinton had to end US partici- 
pation in the enforcement of the 
arms embargo on Bosnia: an 
action which might make sense if 
it were part of an overall strategy 
to help the Bosnian government 
achieve military victory, but 
which in the present context 
serves only to destroy a very deb- 
cate consensus among the leading 
powers that took well over a year 
to reach, and in the process badly 


undermines what is left of the 
Atlantic alliance. 

The president also has to obtain 
the consent of the Senate for his 
nominations to ambassadorial 
posts and other senior positions in 
the state and defence departments 
(Uiough not in the National Secu- 
rity Council). His Republican pre- 
decessors often had difficulty with 
this, not from Democrats but from 
a fellow Republican. Senator Jesse 
Helms, who regards the entire for- 
eign service as a bunch of liberal 
elitists, and who is a master of the 
art of procedural delay. 

Mr Helms is deeply suspicious or 
almost all forms of US engage- 
ment with the rest of the world, 
especially those (such as the Uru- 
guay Round) that take a multilat- 
eral form and require the US to 
abide by rules that other countries 
have a role in setting and adminis- 
tering. He describes the United 
Nations as 'that long-time neme- 
sis of millions of Americans 
. ■ . which costs the American tax- 
payers billions of dollars". He is 
against virtually all foreign aid. 
except aid to Israel. He even disap- 
proves of efforts to make peace 
between Israel and Syria, since for 
him it is axiomatic that Syria's 
desire for peace cannot be sincere. 

Come January, Mr Helms will 
be chairman of the Senate foreign 
relations committee. Mr Clinton's 
freedom of action to pursue any 
foreign policy of his own will from 
then on be severely constrained. 
Those who rely on US leadership 
and co mmi tment in confronting 
the complex problems of the post 
cold war world would be well 
advised to look elsewhere. 


Unsafe as houses 


In the absence of high inflati on it 
was inevitable that the British 
housing market should suffer a 
hard landing after the giddy price 
spiral of the 1980s. Less easy to 
rationalise is the failure of the 
market to respond to economic 
recovery. Even after the recent 
increase, nominal- interest rates 
are low by historic standards. Hie 
ratio of house prices to earnings 
looks similarly depressed. Yet the 
latest monthly survey from the 
Royal Institution. of Chartered 
Surveyors suggests that prices 
and activity have remained stag- 
nant at a time when a seasonal 
uplift might have been expected. 

The impact of the government's 
tax increases on personal incomes 
is an important factor, since mort- 
gage lenders advance money on 
the basis of a multiple of post-tax 
income. Yet the more potent 
restraining influence is probably 
the state of the personal sector 
balance sheet. Whereas the corpo- 
rate sector has paid down debt 
and returned to financial surplus 
since the trough of recession, .the 
personal sector is still struggling 
with the burden of debt incurred 
in the 1980s and the subsequent 
plunge in house prices. Mortgage 
debt between 1988 and 1993 rose' 
from 26 per rent of the equity in 
British homes to an unprece- 
dented 46 per rent 

Hardest hit are the million or so 
households with negative equity, 
where borrowers are trapped in 
their homes until they can save 
enough to repay debt, or find that 
inflation comes to their rescue. 
Since the average value per house- 


hold of this negative equity is only 
£5,100, less than 10 per cent of the 
value of the average house, it 
would take only a small increase 
in prices to do the trick. Yet the 
gap may be harder to close than 
simple arithmetic suggests. 

For a start, the adjustment in 
the personal sector balance sheet 
is proving a slow and painful pro- 
cess. Young first time buyers who 
might normally have emerged at 
this point in the recovery are 
absent because they bought pre- 
maturely in the panic of 1988-89. 
And for those who are still able to 
borrow, the investment logic in 
housing looks less compelling. 
Interest rates may be historically 
low in nominal terms, but they 
are high in real terms, especially 
when the borrower is investing in 
an asset that is not keeping pace 
even with today's very subdued 
rate of inflation. 

In the long ran things may look 
different The demand for bousing 
increases with rising earnings, 
while the supply of land is fixed. 
The poor scope for productivity 
growth in house building ensures 
a rising cost of housing relative to 
other goods. Against that, demog- 
raphers expect a lower rate of 
household formation over the next 
30 years as the population ages. 
This would reduce demand, unless 
older households turn out to want 
more valuable homes. 

For the moment, though, the 
dull state of the housing market 
looks like a symptom of a sustain- 
able, non-inflationary recovery. 
Unfamiliar, perhaps even un-Brit- 
ish, but long overdue. 


Sweden’s Yes 


he end, Sweden's vote to join 
European Union was close, but 
it enough. It was always going 
ie a hard decision to reverse all 
ie years of staunch neutrality 
independence. The fact that 
a the main party leaders, plus 
heart of the business establisb- 
it, threw their weight behind a 
vote must have convinced the 


>w Austria, Finland and Swe- 
have voted to accept the mem- 
hip terms laboriously negoti- 
with Brussels, the pressure 
be on the even more sceptical 
vegians to follow suit. If they 
out. as a majority shU 
ars inclined to do, they win 
xiremely isolated in northern 
ipe. They are and will r em a in 
ibers of the European Eco- 
ic Area, which gives them 
t of the advantages of the sin- 
nacket, hut no real influence 
iU the rules and regulations 
ih underpin it. The terms they 
, negotiated with the rest of 
BU are. by any objective mea- 
, a good deal Even such a 
rious sceptic as Mr Jan Henry 
p, the fisheries minister, said 
t would be good for Norway,- 

good for the ED, if they now 

Yes as well. . . , 

iwever. it is up to the rest of 
Union to prove to Sts new 
hers, from the obwmsjuro- 
asiasts in Austria to the Euro- 
dcs in Scandinavia, that the 
is worth joining- By 

ssiom they will 
b voices arguing for free trade 
budget disdphne - for 
all going to be net contribu- 


tors to the EU budget. They will 
provide a very healthy counterbal- 
ance to the rather more protec- 
tionist influence of the southern 
Mediterranean member states. 
They will bolster the free trade 
lobby headed by the UK, Germany 
and the Netherlands. 

They will also bring more votes 
for environmental protection, for 
open and democratic decision- 
making, and for high social stan- 
dards, aims which have not 
proved so popular in London, at 
least But the EU is nothing if it is 
not about the process of consen- 
sus-building and shared decision- 
making. St riking deals will inevi- 
tably become more difficult as the 
Union grows, but this means that 
more effort must be made to 
streamline the process, to reduce 
the bureaucracy, while at the 
same time providing maximum 
flexibility for the devolution of 
decision-making - so-called sub- 
sidiarity. 

Once Norway has voted, the EU 
can turn Its attention in full to the 
real Challenge of the end of the 
20th century - which is to bring 
the fledgling democracies of cen- 
tral and eastern Europe into the 
fold. In both economic and politi- 
cal terms, it will prove a far more 
diffic ult process than the rela- 
tively painless task of embracing 
three or four prosperous western 
democracies. It will require far 
more adjustment in the policies 
and institutions of the EU. But it 
is the most Important enlarge- 
ment of all for the security, stabil- 
ity and long-term prosperity of the 
continent. 


★ 


17 


The entry of Sweden could prove a turning point in the 
fortunes of the European Union, writes Lionel Barber 

Positive vote for 
a bigger club 



S weden's Yes to member- 
ship of the European 
Union In Sunday's refer- 
endum vindicates the 
EU's enlargement strat- 
egy. 

With the people of Austria. Fin- 
land and Sweden having voted in 
favour of membership of the club, 
pressure will mount on the Norweg- 
ians to follow suit in their Novem- 
ber 28 referendum. 

Whether or not Norway follows 
its immediate neighbour, there is 
now the prospect of a new Nordic 
dynamic for the EU that will offset 
the tug towards the Mediterranean 
which took place with the entry of 
Greece, Spain and Portugal in the 
1980s. 

The entry of Sweden - the most 
powerful of the newcomers - could 
prove a turning point in the EU's 
fortunes after two years marked by 
recession, monetary instability and 
divisions over the conflict in former 
Yugoslavia. “It shows that Europe 
is still attractive.” said Mr Jacques 
Delors. outgoing president of the 
European Commission. 

Mr Delors was worried that a No 
vote in Sweden would have embold- 
ened Euro-sceptics in Denmark, the 
UK, perhaps even his native France. 
It would also have sunk hopes of 
coaxing fish- and oil-rich Norway 
into the fold. Finland would have 
been left isolated, and a Sweden 
outside the EU might have provided 
a focus for deeper Nordic co-opera- 
tion in competition with the EU. 

Instead, three - possibly four - 
wealthy, industrious states are on 
schedule to enter the Union in Jan- 
uary 1995. Each agrees, broadly, on 
freer trade, tighter budgets, stricter 
environment rules and greater 
openness in decision-making. 

Sunday's vote in Sweden means 
that the Scandinavians and Aus- 
trians have finally come in from the 
cold. For most of the post-Second 
World War era. Austria, Finland. 
Sweden and Norway kept western 
Europe at arms -length, cherishing 
their neutrality and viewing the 
political aspects of the (then) Euro- 
pean Economic Community with 
suspicion. All four joined the UK- 
led drive in 1959 to create a free- 
trade rival known as the European 
Free Trade Association. 

The fall of the Berlin Wall in 1989 
left the EfTA states facing instabil- 
ity to the east and caught in a polit- 
ical vacuum. With the EU entering 
its most dynamic phase with the 
creation of a single market and 
plans under way for a single Euro- 
pean currency- the Union suddenly 
looked an attractive option. 

Mr Delors, fearful that premature 
enlargement could dilute the forces 
of integration inside the Twelve, 


proposed a half-way bouse called 
the European Economic Area. The 
EEA offered tbe benefits of the sin- 
gle market but not (till membership. 
Businesses in the non-EU countries 
were forced to accept dozens of reg- 
ulations and decisions over which 
they had no influence. "We were 
silent partners,” says President 
Martti Ahtisaari of Finland. 

Such commercial considerations 
were important in the applications 
by Austria. Sweden. Finland and 
Norway for full EU membership. 
But there was also a hard-nosed 
political calculation: EU member- 
ship looked a safer bet than limited 
regional co-operation or relative iso- 
lation within the EEA. 

“We need to be part of the politi- 
cal processes which have great 
impact on Norway's future." said 
Mrs Gro Harlem Brundtland, 


Norway's prime minister. 

The first impact of enlargement 
will be to prod the Union into 
looking less inward and more out- 
ward, especially towards the east. 
The Nordic countries want Brussels 
to pay more attention to environ- 
mental disasters in the former 
Soviet Union; and they are commit- 
ted to anchoring the Baltic states in 
western Europe. 

The newcomers share a goal of 
early EU membership for the cen- 
tral and east Europeans. In rough 
sequence, enlargement might begin 
with the Czech Republic, Poland 
and Hungary, followed by Slovakia, 
Bulgaria and Romania, and tbe Bal- 
tic states. 

Second, enlargement will affect 
the union’s trade policy. In the 
Council of Ministers - and inside 
the European f tommissio n - a deli- 


cate balance exists between the 
EU's northern liberal wing and the 
more protectionist "Club Med" 
countries often led by France. In 
future, the balance is likely to tilt 
toward a more liberal regime. 

The Nordic countries are also 
expected to line up behind Britain, 
Denmark, the Netherlands and, usu- 
ally, Germany in opposition to over- 
generous state aid. Similarly, the 
addition of net contributors to the 
EU budget may give extra weight to 
the Anglo-Dutch-German campaign 
to control spending at the expense 
of the “Poor Four" - Spain, Greece. 
Ireland and Portugal - which bene- 
fit from extra regional aid. 

Third, enlargement is bound to 
farther erode the neutrality of Aus- 
tria. Finland and Sweden (Norway 
is a member of Nato). The three are 
expected to be drawn progressively 


into the Western European Union, 
the EU's fledgling defence arm. But 
partly out of sensitivity to domestic 
public opinion and to Russia, the 
process will be slow, 

(hi the surface, expansion of the 
EU looks like a victory for UK-led 
arguments in favour of "widening” 
Europe rather than "deepening" 
integration. The newcomers are not 
centralisers and support the princi- 
ple of subsidiarity', the principal of 
devolving decision-making from 
Brussels where appropriate. 

But enlargement is double-edged 
from the UK's standpoint : tbe Aus- 
trians and Scandinavians enjoy gen- 
erous welfare state provisions and 
are determined to strengthen the 
EU’s social policy which is such an 
anathema to the UK. 

Moreover, all four newcomers 
accepted the Maastricht treaty in 
their accession negotiations. They 
show little inclination to follow the 
British policy of seeking treaty opt- 
outs in areas such as the planned 
European monetary union. They 
are likely to be in tbe vanguard of 
moves towards greater integration. 

F inally, enlargement 
means that institutional 
reform is back on the 
agenda. Decision-making 
is hard enough with the 
present 12 member states, each with 
veto power in areas such as fiscal 
policy. Sixteen member states 
means more working languages, 
more European Commissioners and, 
possibly, more paralysis - and adds 
to the pressure for streamlining at 
the 1996 Inter-Governmental Confer- 
ence to review the Maastricht 
treaty. 

The question is: how much? With 
one eye on the next enlargement to 
central and eastern Europe. Ger- 
many’s ruling Christian Democratic 
Union has already floated ideas for 
organising a Union of between 20 
and 25 member states, built around 
a Franco-German “hard-core" com- 
mitted to faster political and eco- 
nomic Integration. But France is 
hesitant about a further surrender 
of political sovereignty; the UK 
remains unremittingly hostile. 

This is a complex subject upon 
which the finest minds in Europe 
have only just begun to ponder. The 
tendency so far appears to be 
towards a minimum set of rules and 
obligations, with no member state 
having the right to stop others able 
and willing to move at a faster pace. 

This is a message that suits the 
Austrians and Scandinavians. They 
have spent 30 years on the outside 
looking in. They have had a vigor- 
ous debate on the merits of mem- 
bership. Now they are committed to 
making it work. 


political price to partnership 

Hugh Camegy on Scandinavian divisions over EU entry 


High 

S wedes are not given to 
hyperbole, least of all Swed- 
ish diplomats. But no one in 
Stockholm thought it was 
out of place on Sunday night when 
Ms Anita Gradin, ambassador to 
Austria and soon to be the coun- 
try’s first European commissioner, 
declared: "Sweden is writing his- 
tory tonight. This is the most 
important decision we in Sweden 
have taken in the post-war period." 

By voting to join the European 
Union, Sweden and Finland (which 
held its referendum last month) 
have cemented a profound change 
of direction that will affect their 
strategic allegiances, political alli- 
ances and economic development. 

However, the snbdned counte- 
nance on Sunday evening of Mr 
Ingvar Carlsson, the Swedish prime 
minister who battled hard to 
achieve the 52.2 per cent to 46.9 per 
cent Yes victors', reflected tbe 
defensive mood in which both Swe- 
den and Finland (which voted 56.9- 
43.1) have embraced ELI member- 
ship. A similar mood can be 
detected in Norway, where uncer- 
tainty surrounds the outcome of its 
referendum on EU entry in 13 days. 

The Nordic countries may be on 
their way into tbe heart of Europe, 
but a large proportion of their peo- 
ple remain hostile to - or at least 
sceptical about - EU membership. 
The move to join the EIT came 


relatively recently. As late as 1990. 
Mr Carlsson continued to hold his 
Social Democratic party back from 
abandoning its traditional opposi- 
tion to membership. A year later, 
with recession looming and the end 
of the Cold War removing a vital 
obstacle to neutral Sweden's partic- 
ipation in the EU’s political struc- 
tures. Mr Carlsson abruptly swung 
the party in favour of joining. 

The application for membership 
lodged by Sweden prompted a simi- 
lar move by Finland which was 
afraid of being left behind on the 
fringes of Europe. It also saw an 
historic opportunity to cement its 
position in the west while Russia 
was in disarray following the col- 
lapse of the Soviet Union. 

In Norway, Mrs Gro Harlem 
Brundtland. the Labour prime min- 
ister, also judged that the applica- 
tions by Sweden and Finland gave 
the political impetus needed for an 
attempt to overturn tbe Norwegian 
rejection of membership in 1972. 

In Sweden and Finland, a major- 
ity of voters has now accepted the 
case for membership made by the 
mainstream political, business and 
labour establishments - accepting 
tbe move from neutrality towards 
European security structures, from 
small-nation independence to polit- 


ical co-operation, and From self-suf- 
ficiency to economic integration. 

But the pattern of voting showed 
the divisions created by the refer- 
enda in Sweden and Finland. Most 
striking was tbe way southern, 
urban areas voted Yes and the less- 
populated rural and northern areas 
voted firmly No. 

In Sweden, most regions voted 
No. Majorities for entry came only 
in the heavily populated areas 


Most regions voted 
No. Majorities for 
entry came only in the 
heavily populated 
city areas 

around the three main cities - 
Stockholm. Gothenburg and 
MalmO. 

For Mr Carlsson, there were 
other worrying features. Opposi- 
tion to change among first-time 
voters was higher than might have 
been expected from young people. 
There was also strong opposition 
from women, who are heavily 
employed in Sweden's generous 
welfare system which they fear is 
under threat from EU membership. 


And some 45 per cent of those 
supporting Mr Carlsson’s Social 
Democratic party voted against 
membership. Those who voted Yes 
were mainly higher-income sap- 
porters of right-of-centre political 
parties, such as the conservative 
Moderate party led by Mr Carl 
Bildt, the former prime minister. It 
is the better-off who expect to gain 
most from EU membership. 

In other words, what might be 
described as the most characteristi- 
cally “Nordic" part of the elector- 
ate - those dependent on the wel- 
fare state and those outside the big 
cities - rejected membership. They 
rallied instead to the No campaign 
led by a minority of tbe Social 
Democratic party leadership and 
two small parties, the Left party 
and the Environmental party. 

Mr Carlsson's pro-EU campaign 
argued membership would give 
Sweden the economic stability 
needed to correct the huge imbal- 
ance in public finances and helpthe 
battle against unemployment - 
now 13 per cent of the workforce. 
He rejected tbe No campaign argu- 
ment that EU membership <vonld 
erode the welfare state. 

Bnt if the economic fruits of 
membership do not come through 
quickly, the split in the Social Dem- 


ocratic party over the EU could 
widen and become a long-term 
problem - not unlike the difficul- 
ties over Europe Mr John Major, 
the UK prime minister, has experi- 
enced in his Conservative party. 

A similar pattern can be seen in 
Finland's vote for EU membership. 
Mr Esko Aho, the prime minister 
who led the successful campaign to 
join tbe Union, has had to deal 
with a bitter internal battle in bis 
rurally-based Centre party, split by 
fierce opposition to Eli membership 
from fanners. The party, suffering 
also the political consequences of 
having led the government through 
a deep recession, is now expected to 
lose power to the opposition Social 
Democrats in next March’s general 
election. 

Norway's Mrs Brundtland also 
presides over a party that is split 
on the EU issue. She knows that if 
she wins a Yes in Norway, the 
country will, like Sweden and Fin- 
land, be divided geographically and 
politically. If Norway votes No, 
however, a wider divide will open 
between Scandinavian neighbours 
tbat have long sought to stay In 
step with one another. 

The Nordic move into the EU is, 
indeed, a historic move. But forg- 
ing a new relationship with Europe 
looks likely to impose a steep price 
on the politicians who have led the 
campaign for EU membership. 


OBSERVER 


Read all 
about it 

■ Whatever city English -speakers 
find themselves landing up in these 
days, there seems to be a local 
English-language newspaper ready 
and waiting. From the Moscow 
Times to the Buenos Aires Herald, 
someone wants to tell you what's 
going on in their neck of the woods. 

Two new ones have now joined 
the ranks. Prague yesterday saw 
the launch of the Bohemia Daily 
Standard, a tabloid backed by Bank 
Austria and publisher Erik Best, 
aiming for sales of 10.00U in a city 
with about 30.000 English-speaking 
expatriates. It's edited by Francis 
Harris, who covered the former 
Czechoslovakia for the UK’s Daily 
Telegraph. 

Meanwhile in Switzerland. The 
Geneva Post was launched on 
Monday. Publisher Jacques Werner, 
a lawyer who also publishes 
academic journals on arcane legal 
matters, hopes his paper will appeal 
to Geneva's large expatriate 
community attached to numerous 
UN and other international 
organisations, 

Werner, who has hired former 
Independent foreign editor Harvey 
Morris as editor and is aiming to 
sell around 10,000 copies, apparently 
has only one prejudice - he doesn't 
want to see the phrase "gnomes of 
Zurich", So we won't mention that. 

But what a pity that both papers 
missed the chance of snapping up 


Andrew Neil, former editor of ihe 
Sunday Times, who has now 
severed most of his links with 
Rupert Murdoch. Maybe the Phnom 
Penh Post is scouting around for a 
new champion . . . 


Battle stations 

■ Takes a naval man to restore 
discipline. For the first time in 
living memory photographers will 
have to wear morning dress at 
tomorrow's state opening of 
Parliament if they want to take 
pictures in the House of Lords. 
Admiral Sir Richard Thomas, a 
former deputy supreme allied 
commander in the Atlantic, who 
took up his duties as Black Rod a 
couple of vears ago, has been 
increasingly concerned by the 
clothes sense of some paparazzi. 
Last year's turnout was felt to be 
particularly sloppy. 


Accustomed 

■ Lawrence Watson, of Hay 
management consultants, confessed 
to delegates at the company's 
annual international conference - 
just ended in Prague - that not 
everything had ran smoothly from 
the outset. 

The problem was that a Czech 
customs officer <juestioned Hay's 
import of 4U0 copies of The Empty 
Raincoat, the latest book by 
employment theorist Charles 
Handy, "ne *.»f the speakers. The 



‘You're in luck - another vacancy 
for a keeper's just come up’ 


books were stopped at the border 
while customs officers fired off a fax 
to ask; "Are the raincoats made of 
wool or cotton and are they for 
males or females? We don’t know 
how much duty to charge you." 


Flying blind 

■ fs Mickey Kantor. President 
Clinton's trade representative and 
tub-thumping promoter of US 
commercial interests, going a bit 
soft? He arrived at this week's 
informal s ummi t of Apec leaders in 
Indonesia on a Singapore Airlines 
flight. And that despite this year's 
diplomatic fracas over Singapore’s 


caning of an American student "At 
least the plane was a Boeing," 
protested an embarrassed Kantor 
aide. 


Late delivery 

■ Yesterday s letter in the FT from 
Mike Flanagan, network director of 
Post Office Counters, caught the 
eye. Not so much for his comments 
about the growing popularity of 
franchised post offices with 
customers, but his statement that 
95 per cent of Britain’s post offices 
have been run by sub-postmasters 
for the past 350 years. 

Business must have been pretty 
slow for the first couple of hundred 
years until Sir Rowland Hill 
introduced the modern postal 
system in i&Jy. 


Loose cannon 

■ Karl Lamers. foreign policy 
spokesman for the Christian 
Democrats in the German 
Bundestag, is fast turning into 
Chancellor Kohl’s unguided missile. 

Lamers wants to set up a "hard 
core" of states at the centre of 
Europe 3nd forge ahead with 
European federalism, much to the 
irritation of several European 
governments. One of those least 
happy is his own. Bonn's finance 
ministry takes exception to Lamers' 
suggestion, that France, Germany 
and the Benelux countries 
will automatically form the “core" 


of European monetary union. 

Londoners have the chance to 
hear for themselves when Lamers 
brings his federalist roadshow to 
town on Thursday, speaking at the 
Royal Institute of International 
Affairs and the European 
think-tank. Federal Trust. 

Will he tone down his federalism 
once at the heart of 
Euroscepticism? Let’s hope not; 
some snap, crackle and pop would 
make a nice change. 


Speeding bullet 

■ You’ve heard of Japan’s 
bullet-train, now meet Brazil’s 
bullet-proof train. Next month a 
private company plans to resume 
train services between SSo Paulo 
and Rio de Janeiro, it's got an 
unusual marketing g immi ck. In a 
bid to prevent passengers being 
caught in the crossfire between 
Rio's police and drug traffickers all 
the windows are to be fitted with 
bullet-proof glass. 


Black whole 

■ Robin Aspina.ll. Panmure 
Gordon's extremely bearish UK 
equity analyst, has. it’s fair to say, a 
sceptical view of the Channel 
Tunnel* To wit: “What is the 
difference between the National 
Lottery and the Channel Tunnel? 
With one of them, investors as a 
whole stand to get as much as half 
their money back." 






18 


FRUEHAUF 

TRAILERS 


Carrying the 
nation’s goods 


For information call 0362 695353 



FINANCIAL TIMES 

Tuesday November 15 1994 



081 6892266 




Russian prime minister told not to cut armed forces’ funds too severely 

Yeltsin warns of friction with US 


THE LEX COLUMN 


By John Lloyd in Moscow 

President Boris Yeltsin yesterday 
forecast new friction between 
Russia and the US where the 
Republican party took control of 
Congress last week. 

He also warned of an increased 
nuclear threat from developing 
countries, scolded his military 
chiefs for inefficiency and told 
his prime minister not to cut too 
much from armed forces' funds. 

In remarks to military com- 
manders in Moscow, Mr Yeltsin 
sounded a more bellicose note 
than he has before, thoug h bis 
speech was cast in the form of 
requiring his forces to be on 
guard against an increasingly 
dangerous world. 

In his first public comment on 
last week's US elections, which 
returned Republican majorities 
in the Senate and the House of 
Representatives, Mr Yeltsin said: 



Yeltsin: scolded military chiefs 


"After the victory of the conser- 
vatives in the US mid-term elec- 
tions we can expect a certain 
toughening of the US stand in 
foreign policy and military 
issues. We should acquire con- 


tacts with the Republicans to bal- 
ance our relations," 

Although not specifically refer- 
ring to the US, he did say that 
the “international situation is 
quite unstable” - a marked 
change from last year's rhetoric 
when he proclaimed that Russia 
no longer had any enemies. Mr 
Yeltsin said Russia could find 
itself drawn into political, ethnic 
and economic conflicts. "There is 
only one solution: to increase the 
readiness of its armed forces,” he 
said. 

He told Mr Victor Chernomyr- 
din, the prime minister, who also 
attended the meeting with the 
commanders, to ensure that the 
military had enough funds so 
“they are not pushed down the 
road of commerce - they have 
their own objectives. You gave 
your word to guarantee the fin- 
ancing of the army and I believe 
you.” His remarks appeared to 


UK national lottery sells 
7m tickets in first 12 hours 


By Raymond Snoddy 

Camelot, the operator of the UK's 
first national lottery for more 
than 150 years, said last night it 
was "absolutely delighted” with 
sales of more than 7m tickets In 
the 12 hours since yesterday's 
7am launch. 

The total was nearly three 
times as much as Camelot's infor- 
mal estimates for the first day. In 
some places, people queued out- 
side retail outlets selling the £1 
tickets. 

By yesterday's launch, more 
than 10,000 outlets had on-line 
computer terminals, and a fur- 
ther 2,500 te rminals are expected 
to be connected before Christ- 
mas. 

The lottery hopes to raise 
£32bn ($52.48bn) over seven 
years, with an estimated £9 bn 
going to causes such as charities 
and the arts. It was launched yes- 
terday in London in a marquee in 


the grounds of the Tower with 
the help of a string octet partly 
drowned out by a group of Morris 
dancers and a fireworks display 
in the drisle over the Thames. 

Mr John Major, the prime min- 
ister. pronounced it "a people's 
lottery”. He said the country 
would be richer for the lottery, 
with everyone benefiting. 

At exactly 7am Sir Ron Dear- 
mg, the Camelot chairman, 
poshed a wooden plunger that 
looked like a toadstool, appar- 
ently to initiate ticket sales 
around the country. The plunger 
was precisely that - and not con- 
nected to anything. 

Early-morning guests in the 
grounds of the Tower - there 
were also official launches in Bel- 
fast, Cardiff and E dinb urgh - 
were not. however, able to buy 
tickets. As a result Mr Major had 
to be driven to a newsagent in 
central London, where he spent 
£5 and promised to donate the 


more than £2m jackpot to Men- 
cap. the mental health charity, if 
he won. 

Mr Stephen Dorreli. secretary 
for the National Heritage, the 
department responsible for the 
National Lottery, also promised 
to buy lottery tickets and to give 
any winnings to Age Concern. 

Mr Dorreli warned that he had 
no early plans to change the 
rules on how money flowing to 
the arts - one of the five benefi- 
ciaries - from the proceeds of the 
lottery should be used. 

Mr Chris Smith, shadow heri- 
tage spokesman, welcomed the 
' lottery launch but wanted to see 
the benefits felt in every commu- 
nity in the country. 

The main questioning voice 
came from the Salvation Army, 
which suggested that punters 
should gave all their lottery stake 
to charity to rather than the 28p 
in the £1 that the lottery will give 
to good causes. 


Norway vote I Threat to coalition grows 


Continued from Page 1 

European co-operation,” said Mr 
Svein Aaser, president of the 
Confederation of Business and 
Industry. 

But Mrs Anne Eager Lahn- 
stem, head of the Centre party 
and the leading anti-EU cam- 
paigner, called for anti-EU activ- 
ists to mobilise all their 
resources. "I believe our argu- 
ments against the EU will remain 
valid," she said. 

On Saturday, one public opin- 
ion poll put EU opposition at 48 
per cent, with the Yes camp at 
just 29 per cent But some sur- 
veys have suggested that Nor- 
way's Eurosceptics would be 
more inclined to vote in favour of 
membership if Sweden joined. 
Reflecting that was another poll 
which gave the Yes camp 49 per 
cent and the Nos 51 per cent 


Continued from Page 1 

to form a government with 
Labour. 

Mrs Robinson is understood to 
have taken legal advice yester- 
day. However, her conviction 
that early elections could disrupt 
the peace process will be farther 
underlined by her own visit to 
Northern Ireland tomorrow. 

The Dublin rift threatens to 
bait progress an the joint frame- 
work document being negotiated 
by the UK and Irish governments 
for a durable political settlement 
in Northern Ireland. After a 
meeting yesterday in Dublin 
with Hr Dick Spring, the Irish 
foreign minister and Labour 
leader, Sir Patrick Mayhew, the 
Northern Ireland secretary, indi- 
cated that progress had been 
made, although he refused to be 
drawn on a date for completion 


of the document “The nature of 
the problems is better under- 
stood, and the way to overcome 
them is better understood,” he 
said. 

The UK government aims to 
start exploratory talks with loy- 
alist political representatives 
before the end of the year, Mr 
Major announced yesterday. 
Speaking in London, he con- 
firmed that the government was 
ready to begin talks with Sinn 
Fein, the IRA’s political wing, by 
the end of the year. 

He said the purpose in both 
cases was the same: to draw the 
paramilitaries ‘into democratic 
politics and out of violence”. Mr 
Major said last week’s killing of 
a post office worker by suspected 
Republican gunmen reinforced 
tbe need to “deal with" the 
weapons held by republican and 
loyalist paramilitaries. 


FT WEATHER GUIDE 


Europe today 

A complex area of low pressure over central 
Scandinavia will dominate a large part of 
Europe. Westerly winds will draw warm, moist 
air deep Into the continent 
A sharp change to wintry conditions will occur 
over northern Scandinavia End near the border 
between Russia and Europe. 

Plenty of rain is expected along the western 
coast of Norway and in parts of eastern France 
and Germany, Rain wBI also move Into Poland 
and western Russia ' Further east, there w3l be 
widespread snow. 

The western and central Mecfiterransan will be 
tranquil and sunny with temperatures around 
20C. It will be stormy at the extreme east of foe 
Mediterranean where there will be heavy rain, 
thunder and a risk erf severe gale winds. 

Five-day forecast 

During the next couple of days, Spain and Italy 
will be sunny and tranquil. Conditions will 
deteriorate during the weekend as heavy rain 
develops over almost aU the Mediterranean. 
Western and northern Europe will be very 
unsettled, especially towards the weekend 
when there will be rdny and showery periods 
with some breaks in foe doud. 


TODAY'S TEMPERATURES 




Vs ~970 0 V j . 1000 ] ' j . 

® 80 J<iv ' ■ 3 S 10 / 10 / 

/y/ y 20 ^ 


^ • ’ \»* n\ - ia .. PX'} o 




Wmr\ 




C 


1020 1010, - ff- 




■■■ ■ SP 

/ , , Warm front m , Cold front A A, wind speed tn KPH V 

Situation af 12 GAfT. Temp enuu ms maximum hr day. Forecasts by Mateo Consult of the Neth a t utf s 



Maximum 

Befjmg 

Mr 

6 

Caracas 

fair 

30 

Fare 


Celsius 

Belfast 

shower 

10 

Cardiff 

fan- 

11 

Franktut 

Abu Dhabi 

sun 

31 

Belgrade 

fair 

15 

Casablanca 

sun 

20 

Geneva 

Accra 

Mr 

32 

Beifin 

Mr 

11 

Chicago 

sui 

10 

Gibraltar 

Algiers 

sun 

22 

Bermuda 

fair 

25 

Cologne 

shower 

13 

Glasgow 

Amsterdam 

fab 

13 

Bogota 

shower 

20 

Dakar 

an 

29 

Hamburg 

Athens 

fat r 

15 

Bombay 

. fair 

33 

Detea 

far 

18 

HetaHtf 

Atlanta 

doudy 

20 

Brussels 

shower 

13 

Delhi 

sun 

28 

Hang Kang 

B. Abes 

{air 

30 

Budapest 

rah 

11 

Dubai 

lak 

31 

Honolulu 

8, ham 

shower 

13 

Ciiagen 

shower 

10 

Dublin 

shower 

11 

Istanbul 

Bangkok 

fair 

31 

Cam) 

doudy 

22 

Dubrovnffc 

fair 

18 

Jakarta 

Barcelona 

sun 

19 

Cape Town 

shower 

20 

Edinburgh 

shower 

11 

Jersey 


22 Mart 
13 Majorca 
13 Matts 
20 Manchester 
11 ManSa 
11 Mabaume 
6 Masco Cite 
24 Miami 

30 Mfan 
10 Montreal 

31 Moscow 
13 Mmich 


No global airline has a younger fleet. 

Lufthansa 


Kaachi 

sun 

35 

Nairobi 

shower 

Kuwait 

fair 

29 

Naples 

SUI 

L Angeles 

far 

19 

Nassau 

rata 

Las Palmas 

fab 

24 

New York 

cloudy 

Lima 

doudy 

22 

Nfce 

fab 

Lisbon 

sui 

20 

Moosfa 

fort 

London 

fab 

14 

Oslo 

fab 

Luxifaurg 

rain 

12 

Parts 

rain 

Lyon 

rata 

15 

Perth 

sun 

Madeira 

fab 

21 

ftague 

rain 


18 Rangoon 
21 Reykjavik 

21 Rio 

12 Rome 
30 S. Frsco 

22 Seoul 

23 Singapore 
25 Stockholm 
15 Strasbourg 

7 Sydney 
-5 Tangier 

13 Tel Aviv 

24 Tokyo 
21 Toronto 
28 VsKouuer 
15 Venice 

« Vienna 
20 Warsaw 
7 Washington 

14 Wellington 
33 Winrtpeg 
11 Zuridi 


fair 30 
sleet 2 
shower 27 
fair 20 
rain 16 
cloudy 12 
ran 31 
doudy 9 
rein 15 
lair 23 
sui 22 
found 22 
cloudy 13 
sun 9 
rain 7 
fair 13 
ram 12 
rain 10 
doudy 17 
cloudy 15 
sun 3 


Testing the 


provide a rationale for wide- 
spread claims that military com- 
manders are engaging in illegal 
commercial operations. 

The Interfax news agency 
quoted him as saying that 385.000 
personnel had been cut this year, 
giving an official total of 1,917.400 
under arms. This is likely to be 
cut to to 1.7m by January 1996. 

He said the military leadership, 
headed by General Pavel 
Grachev, the defence minis ter, 
“does not fully carry out my 
orders to tighten military disci- 
pline, law and order”. 

Gen Grachev has been under 
pressure in the state duma, the 
lower house of parliament, to 
resign following corruption alle- 
gations in the high command. So 
Car, the president has protected 
him 

The duma will take a vote of 
confidence in the min ister on 
Thursday. 


US rallies 
support on 
N Korea 

Continued from Page 1 


North Korea has to disclose to 
the outside world the extent of 
its existing ability to manufac- 
ture nuclear weapons. Mean- 
while, Pyongyang is to receive 
aid to pay for the installation of 
$4bn worth of safer light water 
reactors. 

Mr Clinton's discussions yes- 
terday focused particularly on 
Japan and South Korea, which 
are to provide the bulk of the 
finance, but he also secured valu- 
able support from China, one of 
the few countries with influenc e 
in North Korea. 

China was pleased with the 
deal and “will play a positive role 
in promoting peace and stability 
in tbe Korean peninsula", the for- 
eign ministry spokesman said 
after Mr Clinton's meeting with 
President Jiang Zemin. 

The US president also urged 
South Korea and North Korea, 
which has reacted coolly to 
recent overtures on investment 
from Seoul, to resume bilateral 
contacts. 

Specific matters were also 
raised with Mr Jiang, including 
human rights. 

Mr Clinton offered Mr Jiang a 
compromise to resolve a highly 
contentious arms issue, described 
by the Americans as a "potential 
time bomb" for US-China rela- 
tions. The proposal would 
absolve China of penalties if It 
disclosed sales of M-ll missiles to 
Pakistan, US officials said. 

As the issue of East Timor con- 
tinued to dog the talks. Mr Clin- 
ton, asked whether the US bad 
softened its stance on human 
rights in favour of trade deals, 
said Washington continued to 
raise the issue with Indonesia. 

The US had obtained assur- 
ances from Indonesia that the 
students who had invaded the US 
embassy compound in Jakarta 
over the weekend would not face 
retribution, he added. 


Mr Richard Qster, Cookson’s chief 
executive, and Mr David Davies, John- 
son Matthey's chairman and chief 
executive, are both ambitious men. 
Neither seems fulfilled running a 
medium -sized public company. The 
suspicion is that the main drive 
behind their merger talks is size for 
size's sake. A combined group would 
be able to embark on larger acquisi- 
tions than either company individu- 
ally. 

If Cookson and JM do consummate 
their marriage, synergies will doubt- 
less be claimed. But from the informa- 
tion so far available, it is bard to see 
these being substantial. True, there 
would be cost savings from ehmfaat- 
ing one or other head office, but that 
would be true if any two businesses 
were merged. Synergies may also 
come from putting together the com- 
panies’ electronics and precious met- 
als operations: Cookson and JM make 
complementary electronics products 
which may be able to share a distribu- 
tion channel. JM's precious metal 
refining business may also be able to 
wring some extra profit from a verti- 
cal relationship with Cookson’s pre- 
cious metal fabricating arm. But nei- 
ther prospect looks terribly exciting. 

Even without much in the way of 
industrial logic, shareholders in one of 
the companies could benefit if they 
received a particularly large slice of 
the merged entity. Yesterday there 
were suggestions that JM sharehold- 
ers might do somewhat better than 
the company’s relative market capital- 
isation would suggest. But if that were 
the case, the benefit to JM investors 
would be at the expense of Cookson's. 
Tbe companies will have to put on a 
convincing demonstration of the 
industrial case for merger if share- 
holders are to be satisfied. 

BASF/Boots 

Boots’ reasons for selling its pre- 
scription drugs business are easier to 
fathom than BASF’s motives for buy- 
ing It Boots’ operations lacked critical 
mass in research and development 
Discovering and bringing a new medi- 
cine to market is risky. The best way 
to reduce that risk is to have a broad 
portfolio so, if a drug is dropped 
because it proves unsaf e or ineffective, 
alternatives remain But Boots’ drugs 
sales were insufficient to support such 
a large portfolio. When its heart-drug 
Manoplax failed, there was little to 
take its place. 

In the short-term, BASF may dis- 
cover some geographic and product 


Merger partners 

Sham prtcas relative to the . . 

FT-S&A Afr-Share Index 

120 • ‘ In Tin 

Jodnson m a n */. 



1969 90 91 92 . 93 m 

Soueae FT Gksphte **••** 

synergies. Overheads, marketing a nd 
R&D can be rationalised. The price, at 
1.6 tunes sales, is reasonable compared 
with the multiples paid for American 
Cyanandd and Syntex. 

Even so, compared with Bayer or 
Hoechst, BASF will remain a pharma- 
ceutical pygmy - about 30th in world 
rankings. Buying Boots will promote 
it from tbe fourth to third division, ff 
the Boots deal is toe first In a series 
enlarging its patented drugs business, 
BASF’s strategy may work. As Swe- . 
den’s Pharmacia has demonstrated, 
viable drugs companies can be con- 
structed by amalgamating third divi- 
sion players. Innovative products 
could be secured by taking a stake in 
a US biotechnology group. 

Though BASF’s strategy may pay 
off it is hard to believe it is the best 
use erf the group’s resources. BASF's 
st rengthg are not in marketing medi- 
cines. They are financial - its cost of 
capital is well below ICTs - and in 
technology-based heavy industry such 
as bulk chemicals. Galling though 
Hoechsf s and Bayer's healthcare suc- 
cess may be, BASF would do better to 
concentrate an what it does best 


British Steel 

There is no doubt the spectacular 
profits momentum at British Steel will 
continue as economic recovery in 
Europe gathers pace. But the six-fold 
increase in interim earnings per share 
will not stop investors asking whether 
now is the time to selL The issue is 
whether the foil cyclical upswing in 
earnings has been discounted in a 
share price up nearly 30 per cent 
against the market this year. 

Higher prices and volumes will 


ensure that British Steel’s pre-tax 
profits will soon rise to beat &e £733® 
achieved in 198W0; the peak of the 
previous cycle. The top of the current 
. cycle is likely to be 199647. in which 
pre-tax profits could amount to £9QGm. 
sarnie 33p of eariijngs joer share. This 
far ahead, there is necessarily consid- 
erable imprecision about such fore- 
■ casts - perhaps profits will exceed 
£\bn. But assuming a. conservative 
' outcome, the shares do not look cheap. 
At 159%), they are trading at nearly 
five times peak earnings, not far short 
of the peak valuation fa the last cycle. 

Optimists argue that the recession 
due for 1998 or thereafter will be gent 
ler than the previous one. British 
Steel, for one, believes that steady 
dem^id from Asia will offset the 
impact of downturn fa Europe. If this 
were to be tbe case, the shares could 
arguably command a higher rating 
now, on the basis that the stability 
and therefore quality of earnings was 
set to Improve. However, the optimis- 
tic scenario Ignores the woeful lack of 
progress in eliminating subsidies and 
overcapacity from the European steel 
industry. The shares are supported, 
now by an above-market yield, but a 
rerating would be undeserved. 

BSkyB 

Hie retail portion of the BSkyB flo- 
tation. contains an unusual feature: 
shareholders will not know the price 
of the shares when they send in their 
application forms. They will write but 
cheques specifying how many pounds 
worth of shares they wish to buy, but 
the price will be set later after a book- 
building process involving institu- 
tions. . 

The main advantage of the tech- 
nique is that the time between pricing 
an offer and the start of dealing will 
be shortened. Typically fa the UK, 
there is a delay of up to two weeks to 
give small investors time to turn 
round toe paperwork after the price is 
set By shortening the period, under- 
writing risk could be reduced and the 
proceeds from the offer increased. 
Such a system is common in the US. 

BSkyB’s sponsors must convince 
small shareholders to buy shares with- 
out knowing what their pric&eamfags 
ratio or yield will be. A similar tech- 
nique was used in the third tranche of 
BTs privatisation. . The difference is 
that then retail investors did not sim- 
ply have to rely on institutions’ judg- 
ment of what constituted a fair price; 
they were sold shares at a discount to 
what the professionals paid. 


/VfV 

METROPOLITAN 
Housing Trust 


US$10 million 


Hill Samuel arranged a Medium Term 
Revolving Credit Facility- 


^ BIMER BANCA SPA 

BIMERBANCASPA 

GRUPPO CASSA Dl RISPARMIO IN BOLOGNA 


1TL 60 billion 


Hill Samuel arranged 
a Ten Year Term Loan Facility 


MY KINDA TOWN PLC 



Hill Samuel sponsored the 
Share Placing & Rights Issue 


(EalMoife (Miftaiil 


US$31 million 
Currency Equivalent 


Ten Year Private Placement 
July 1994 




Doing what we do best. 



Hill Samuel 


Hill Samuel Bank Limited ■ 100 Wood Srreet - London EC2P 2AJ 
A member of the Securities & Futures Authority ■ A member of the TSB Group 
















: -31 

V 


FINANCIAL TIMES SURVEY 


financial insti- 
tutions are looking with 
fresh eyes at electrode 
“^oology as the, gear 
fea ever fiercer competitor? 
not only from within the BiS- 
industry taelf, but 

w °rW outside. 
^ survey 
d^ with a number of the prin- 
“5®* themes m financial tech- 
nology including payment 
systems, unage processing and 
database technology. They also 

cover management issues with 

atechnolpgical slant, including 

*“5 ^ lts Prevention, and 
outsourcing. 

5501116 iTOD ^ 1“ the 
fact that these same technolo- 
gies are facilitating many of 
the new challenges and lower- 
ing the barriers of entry to the 
f inan ce business. 

It could have been predicted, 
for example, that Swift, the 
banks' global electronic pay- 
ments message system, would 
eventually face competition 
from an organisation outside 
the banking world with a 
global network and access to 
financial expertise. That com- 
petition now exists and Swift 
has been forced to announce 
price cuts and to lower its join- 
ing fee, in response. 

Ibos (Inter-bank On-line Sys- 
tem) is the kind of organisa- 
tion which observers argue 
represents the new competition 
far Swift - in embryonic form, 
at any rate. 

It is a joint venture initially 
between the Royal Bank of 
Scotland. Banco Santander of 
Spain - and Electronic Data 
Systems of the US, a subsidiary 
of General Motors and the 
world's largest computing ser- 
vices company. 

Other members include 
Credit Commercial de France 
and Banco de Commercio e 
Industria of Portugal. The first 
US customer. First Fidelity 
Banco rporation joined this 
year. 

Thomas Meta:, director of 
global business development 
for Ibos in the UK, while reject- 
ing the notion that Ibos is a 
direct competitor for Swift, 
says the group has built a 
Cross-border cash managpmpnt 
system - a digital superhigh- 
way for the banking industry. 

Swift, meanwhile, is extend- 
ing Its business, fato the area of 


COMPUTERS IN FINANCE 

Tuesday November 15 1994 



International banka are by Tar the torywt mwoi of infor ma tion technology In the b u si n ess world. Above: the tracing floor of Midland Global Markets, near Southwark Bridge, London 


Picture by Jonathon Cuff 


Management attitudes are more important than technology 

While the fiercely competitive financial services industry is increasing its spending on information technology, 
it frequently fails to achieve the full benefits. Alan Cane examines the problem 


securities messages, and has 
applied to become a network 
supplier to the UK securities 
industry;s yet- to-be-imple- 
mented Crest settlement sys- 
tem as part of a campaign to 
increase message traffic and 
revenues. 

The threats to the traditional 
finance industry come from a 
multiplicity of directions. 
Microsoft, die world’s largest 
software house, this year 
acquired Intuit, developer of 
the most popular personal 
finance software. Quicken, 
used by about 6m personal 
computer users. 

The deal, which is subject to 
scrutiny by the US antitrust 
■authorities, gives Microsoft an 
important toehold in a market 
- home hankin g - where tradi- 
tional banks have failed to 
make much of an impact. 


Microsoft, developer of M SI 
DOS-Windows, the most popu- 
lar operating system for per- 
sonal computers, also aims to 
take a leading role in the cre- 
ation of the information super- 
highway. 

One measure of the financial 
institutions' renewed interest 
in technology, after some years 
of cutting hack expenditure, is 
growth in the information 
technology budget According 
to the consultancy Ernst & 
Young. US financial institu- 
tions will spend $16.35bn on 
technology in 1994, 6 per cent 
higher than the previous year. 
Andrew Mayer of Ernst & 
Young estimates that the total 
will be $l9.8bn in 1997. 

Comparable figures do not 
exist for Europe but the con- 
sultancy. Price Waterhouse, 
says that more than half the 


financial services companies it 
reviewed in its annual informa- 
tion technology survey intend 
to increase their spending on 
technology, despite the (act. it 
says, that many IT projects 
have proved eventually to be 
failures. 

This is hardly new. either in 
the finance industry or outside. 
What is depressing is that over 
the years there has been so 
little progress in ensuing that 
projects are brought in on time 
and budget 

The consequences can be 
expensive. Stewart Stevenson, 
senior manager for systems 
development at the Bank of 
Scotland, after listing tried and 
tested rules for successful proj- 
ect completion concluded with 
the admonition: "If you can 
print money, ignore all the 
above." 


Clearly, many companies do. 
According to Price Water- 
house, some 25 per cent of com- 
panies believed that most of 
their IT projects were unsuc- 
cessful either because they 
were delivered too late and 
over budget, or because they 
had foiled to meet user-needs. 

“The results paint a depress- 
ing picture," commented PW. 
“With such si gnificant difficul- 
ties in the delivery of IT pro- 
jects. it is not surprising that 
there exists a big issue sur- 
rounding the integration of IT 
with corporate objectives. The 
result calls into question the 
extent to which the IT func- 
tions understand the busi- 
ness.” 

The PW result confirms the 
view of Nick Temple Interna- 
tional Business Machines' gen- 
eral manager for the finance 


industry in Europe who argues 
that data processing depart- 
ments in financial services 
companies have become unres- 
ponsive to the needs of the 
business, (see interview, page 
two of this survey). 

There are a number of tech- 
nological developments which 
may result in some improve- 
ment in this unsatisfactory sit- 
uation. An important element 
is the growth of object-oriented 
software development. Essen- 
tially, to take advantage of 
new business opportunities, 
software has to be developed 
rapidly and accurately. Tradi- 
tional methods of software 
development are slow and 
prone to error. 

The principle behind object 
oriented software is the cre- 
ation of libraries of software 
modules which can be swiftly 


assembled in different ways to 
create new applications. 

In the end, however, manage- 
ment attitudes are more impor- 
tant than technology. The Bos- 
ton Consulting Group has 
established a n umb er of rules 
for successful computer pro- 
jects (a somewhat similar list 
to Mr Stevenson's) of which 
the most important are: 

• Never to commission infor- 
mation technology projects (it 
is the business imperative that 
is important). 

• Quantify the benefits at 
every stage of the project (if 
you do not measure benefits, 
you will not achieve them). 

• Make sure the managers 
understand their jobs are on 
the line if the project Mb fin 
too many cases, nobody has 
continuing responsibility for a 
project). 


It gives the example of a big 
European bank which was con- 
sidering requests from its man- 
agers for 300 individual com- 
puter projects. There was no 
agreed way of measuring the 
benefits, political rather than 
business needs dictated priori- 
ties and most of the projects 
were under-staffed. 

Initial analysis revealed that 
many of the projects were 
unattractive. The bank refo- 
cused its activities so that only 
the most attractive projects 
went ahead and these agreed 
projects were fully resourced. 
The result was a $400m 
increase in the economic value 
(net present value) of the pro- 
jects over their life. 

Concentration on core com- 
petences is the watchword for 
the early 1990s, however, and a 
number of financial services 
institutions are beginning to 
question their involvement in 
data processing. Some are 
actively considering, or have 
implemented, the outsourcing 
of parts of their information 
technology operations. IBM. for 
example, is managing the auto- 
mated teller machine network 
of one of the largest building 
societies. 

There is a fine balance, how- 
ever, between operations 
which can be outsourced and 
those which must be kept 
in-house. One High Street bank 
which outsourced about 20 per 
cent of its operations told the 
consultancy Business Intelli- 
gence: “Financial services 
these days is so competitive 
that if you have an Idea - and 
we have several in the bank at 
the moment which are being 
pursued - there is no way that 
we are going to let any outside 
supplier anywhere near it" 


ON OTHER PAGES 

Banking systems Page 2 

New payment methods .. Page 2 

Dealing room trends Page 3 

Interbank messaging Page 3 

Software development ... Page 4 
Document processing .... Page 4 

Computer security Page 4 

Using data resources Page 4 

Multimedia systems Page 5 

Supercomputers Page 5 

Award-winning strategy . Page 5 
Automated services ....... Page B 

Controlling the costs Page 6 


Why did all these 
companies get on the 
Teknekron Information Bus? 

Here’s why... 


ABH-hMRC 

Aiiiar-ce Capital Management 
Bank of Beaten 
Bank of Nova Scotia 
BNP 

Chase Manhattan Bank 
HSBC 

j.P. Morgan 
Merrill Lynch 

NationsSanc-CRT 
Royal oank of Canada 


Long Term Credit Bank 
National Australia Bank 
fJ.'k.ko Securities 
Nomura Research 
florinchukin Bank 
The Tokai Bank 
Yamaiciii Securities 


Ban quo iridoscrez 
Baring Securities 
Janies Cape! 

Credit Shisse 
DG Sank 
Generate Bank 
Goldman Sachs 
Istitiito San Paolo di Torino 


AppJix 

Desktop Data.. Inc 
infinity 

Intercom Data Systems 
Leading Market Technologies 
ilustoa Information Technologies 
OMR Systems 
Renaissance 


US' Microelectronics 
Chevron 
Intel 
Mobil 
Motorola 
Sharp 

Sony 

VLSI Technologies 
Xilinx. Inc. 


Khigiit-Ridcer Financial, in: 
Quick 
neuters 


“The TIB simplifies the desktop solution by bridging PC, Unix and object-orientated 
technologies. The TiB provides us with a corporate information highway.” 

John Xeazlrian 

EVP, Information Technology 

NationsBanc - CRT 

“Teknekron’s TIB offers the first real-time data distribution framework for object- 
orientated applications in the financial arena and beyond L* 

Steven P. Jobs, Chairman and CEO 
NeXT Computer, Inc 

“The.Teknekron Information Bus is the most advanced platform for distributing market 
data, as well as for integrating all types of information.” 

Peter dark, Vice President 
J.P. Morgan 


“Teknekron has proved itself invaluable as a technology agent for information 
highway engineering.” 

Rupinder Puri, Senior Vice President 
Chase Manhattan Bank 

“Sun and Teknekron Software Systems grew up together on Wall Street; it was our joint 
solution that launched the whole market for innovative trader workstations. Today, we’re 
natural partners in bringing advanced technology fo other areas - like the back office 
and large DP centres that need to re-engineer to gain competitive advantage.” 

Scott McNeaty, Chairman, CEO and President 
Sun Microsystems, (nc 


The patented Teknekron Information Bus™ (TIB*) 
software architecture provides these leading 
companies with an ideal framework for their 
corporate information environments. If you don’t 
have your information highway strategy mapped out 
yet, call Teknekron today and get on the bus! 


>R 


Teknekron Software Systems, Inc. 

We Integrate a world of information” 

For more information about Teknekron's world-class information integration solutions, 
contact us at one of our worldwide offices 
emai!:iflfo@tss.com 


r 


Boston 

617 - 342-7007 


London 

071 - 283-7300 


New York 
212 - 483-0153 


Palo Alto 
415 - 325-1025 


Sydney 

02 - 256-2154 


Tokyo 

03 - 3206-3491 


Toronto 

416 - 360-2309 


Zurich 

01 - 212-7181 


v-- : 'V 



II 


FINANCIAL TIMES TUESDAY NOVEMBER 15 1994 


COMPUTERS IN FINANCE 2 


Michael Dempsey on new approaches to retail banking 

Keeping customers happy 


T en years ago, Ken Pil- 
beam was head erf mar- 
keting at Compucard, a 
project to promote telephone 
shopping. It was an era of 
Unbridled op timism — and Mr 

Pilbeam shared the common 
dream of technology sweeping 
through the retail sector to 
revolutionise the most mun- 
dane purchases. 

Today, he is head of opera- 
tional systems manage me n t at 
Barclays Bank, and despite 
commanding a formidable 
arsenal of technology, Mr Pil- 
beam is no longer an IT vision- 
ary - “with the remote shop- 
ping idea In the '80s, we 
encountered significant con- 
sumer resistance. We didn't 
realise that social interaction 
is important, that people want 
to get out and about when they 
shop.” 

This has proved a useful les- 
son for Mr Pilbeam: under the 
£10Qm Customer System Proj- 
ect, 1,100 Barclays branches 
have joined a new approach to 
the retail customer. A central 
database has been constructed 
to hold 14m customer records. 
The big idea is to puQ together 
previously separate processes, 
such as current account versus 
deposit, and replace them with 
one flow of data relating to 

p nnh individual. 

The Customer System is 
aimed at eliminating the 
delays that characterise open- 
ing a new account Rather than 
take forms from a customer, 
then process the risk involved 
and get back to the customer 
after an extensive credit check, 
Barclays wants to be In a posi- 
tion to approve and issue an 
account number on the spot 
A central index held on an 
IBM 8090 mainframe at the 
bank's Gloucester data centre 


is ffir<y? ssed via smaller IBM RS 
6000 processors at each branch. 
The central index integrates 
data from customer accounts 
at branch level, Barclay card 
and tin bank’s financial ser- 
vices operation. This goldmine 
of info rmation is also a moun- 
tain of data to store. The data- 
base alone holds the equivalent 
of 72m sides of A4 paper. 

Although the end-product 
should mak e itself felt at 
branch level, Barclays’ has had 
to take a strategic view of the 
IT requirement that powers the 



Keith Dufftam: rapid options must 
be In place it a system fails 

Customer System. Huge quan- 
tities of data are best handled 
by a combination of mainfr ame 
computer and dedicated stor- 
age capacity. The Gloucester 
data centre, run under the 
aegis of Barclays’ IT arm, Bar- 
clays Computer Operations 
(BCO), has installed extra stor- 
age capacity. 

US data storage specialist 
EMC supplied a Symmetric 
5500 system. Essentially, a 
sophisticated series of inter- 
linked hard disks similar to 
those found in an office PC, the 


Symmetrlx provides an elec- 
tronic Wing cabinet that holds 
data for the IBM mainframe. 

This box cost £750.000 includ- 
ing maintenance over a five- 
year period. It is not wholly 
dedicated to the Customer Sys- 
tem, but with a storage capac- 
ity equivalent to 10,000 desktop 
PCs, the EMC 5500 illustrates 
the kind of technology that is 
necessary to keep a huge retail 
project upland-running. 

If this impressive investment 
Is to pay off, tiia retail cus- 
tomer must sense the bank is 
offer ing a reliable service. Sud- 
den interruptions to normal 
service attributed to the catch- 
all excuse “the computer is 
down” are fatal to customer 
relations in a competitive high- 
street market 

Keith Durham, a customer 
account executive at Barclays' 
Cheshire computer centre, has 
studied the options for Busi- 
ness Resumption Planning Pro- 
cedure (BRPP). In the event of 
a big systems failure at 
Gloucester, the operation could 
be run off another mainframe 
site within a couple of hours. 

This is the dramatic end of 
BRPP. What it really boils 
down to is having paper forms 
under the counter to cope with 
any collapse in the branch 
server - “we don’t want our 
staff to have to twiddle their 
thumbs while customers wait 
for a service. You've got to 
have procedures in place to 
handle any type of failure,” 
says Mr Durham. 

Telephone banking services 
such as Midland Bank's First 
Direct or TSB's Teleservice are 
being touted as the obvious 
direction for retail banking. 
Multimedia branches offering 
an array of automated termi- 
nals that stretch existing Auto- 


mated Teller Machine (ATM) 
technology into the world of 
interactive video and live links 
to financial advisers are under 
review by most large banks. 

The Nationwide Building 
Society has been running a 
pilot remote banking installa- 
tion in Aylesbury, using tech- 
nology from Siemens-Nixdorf, 
for the last year. 

In Italy, a large number of 
institutions compete in the 
retail banking sector. So 
national branch networks are 
not as extensive as in the UK 
where the historic competition 
has been between tour opera 
tors. Italian banks have been 
swift to install automated 
branches design e d by Olivetti 
as a comparatively cheap 
means of rapid expansion. 

The impetus behind these 
developments is cost A pres- 
ence on every high street is 
expensive in terms of real 
estate and staff salaries. One of 
the Italian automated branches 
will cost around $lm to build 
and equip. 

Reliability is a key compo- 
nent of retail banking. Pilbeam 
expresses reservations about 
automated branches r unning 
intelligent multimedia termi- 
nals - "the technology is still 
not perfect Even if the toilure 
rate is only one per cent, that 
can put people off. There will 
be resistance until it becomes 
the norm.” 

Barclays appears to be 
steering clear of the herd 
instinct in retail banking. By 
putting appropriate data at the 
disposal of branch staff, it is 
gambling that the customer 
still wants a human face 
behind the counter. Relegating 
the computer terminal to a 
vital supporting role may 
prove to be a crowd-puller. 


Finance industry attitudes are changing fast, says Nick Temple of IBM 

Pushing back to profitability 


N ick Temple's transla- 
tion earlier this year 
from chief executive of 
International Business 
Machine’s UK subsidiary to 
general manager with respon- 
sibility for the company’s busi- 
ness with tiie European finan- 
cial community is indicative of 
the changes reshaping the 
world’s largest computer com- 
pany. 

Mr Temple, 46, has been 
largely credited with pushing 
through measures which have 
put the UK operation back on 
the path to profitability after 
two years of heavy losses. Now 
he has returned to the busi- 
ness sector - the finance 
industry - where he built his 
reputation in the 1980s as a 
tough, no-nonsense manager 
with an acute understanding 
of the industry’s direction. It 
is an area of critical Impor- 
tance to IBM. Europe is tts 
largest market and the finan- 
cial institutions among its 
largest customers. 

The sector is in a state of 
profound change, he says - “it 
would be wrong to say the 
financB industry is wmlng out 
of recession, hut its attitude is 
starting to change very signifi- 
cantly. Priorities are funda- 
mentally different from only a 
year ago. 

“Last year, heads of finan- 
cial institutions were con- 
caned about the management 
of change, controlling casts 
and finding ways to get the 
maximum benefits from their 
investment in information 
technology. Today, while the 
management of rhang w is high 
on the list, the real concern is 
how to mobilise new technol- 
ogy to combat competition. 
Competition is starting to 
become a real threat” 

The IBM mainframe com- 
puter remains the workhorse 
of finance industry data pro- 
cessing, but the compnter 
giant can no longer dictate its 
customers’ computing strategy 
as it did in the past 
Mr Temple prefers to talk 


about collaboration, partner- 
ships and teamwork. Some of 
his ideas are focused on the 
technological horizons: “We 
are planning to form partner- 
ships with some of our cus- 
tomers to develop radical 
thoughts about ways of work- 
ing in the future.” 

The “Information super high- 
way,” the convergence of com- 
puting and telecoms to provide 
interactive multimedia ser- 
vices to tiie office and the 
home, looms large in his 
thoughts. "Suppose you were 
setting up an electronic bank 
from scratch and you were 
defining an 
agent (a piece 
of software 
that you could 
instruct to 
carry out your 
banking for 
yon) on the 
information 
superhighway, 
what would it 
be, how would 
It look and 
how would you 
go about doing 
it? 

“This would 
be quite differ- 
ent from con- 
ventional Idem 
of home bank- 
ing which are 
simply extensions of what 
goes on in the bank branch.” 
He believes that to malm home 
hanking attractive for custom- 
ers who may be intimidated by 
technology tt will be necessary 
to combine it with other ser- 
vices - say, home shopping. 

Developments of this kind 
will have their own conse- 
quences. Conventional retail- 
ers will have to work harder 
to make shopping a pleasure - 
or their customers will use the 
superhighway in preference to 
physical shops. 

Most of Mr Temple’s atten- 
tion, however, Is directed 
towards more immediate 
issues. He is a powerful advo- 
cate of improvements in risk 



Nick Temple: a dear view of the 
industry's direction 


management, pointing out 
that the speed at which finan- 
cial transactions are carried 
out and transmitted over net- 
works could and has led to 
fraud and disaster - "if It's 
not applied in the right way, 
the technology becomes a lia- 
bility and not an enabler.” 

And he is concerned about 
tiie delays which most finan- 
cial institutions face in exeat 
mg software to meet new busi- 
ness needs - "data processing 
departments in financial insti- 
tutions have become unrespon- 
sive to business needs. They 
seem less attached to the busi- 
ness impera- 
tives. What we 
have to do is 
construct 
building 
blocks, using 
object-oriented 
technology, 
from which we 
can assemble 
solutions 
quickly.” 

Object-orien- 
tation, a new 
fashion In soft- 
ware develop- 
ment, involves 
the construc- 
tion of stor- 
able. re-usable 
software mod- 
ules. An obvi- 
ous idea, perhaps, but one 
whose time has come. 

Mr Temple says IBM is now 
moving staff to work with cus- 
tomers on the devel op me nt of 
the building Mocks. A key ele- 
ment is the establishment of a 
design standard (architecture) 
for applications in the finan- 
cial services area which will 
mean that different applica- 
tions will work comfortably 
together - “Financial Applica- 
tions Architecture is a data 
and process arc hitecture. We 
have committed ourselves to 
developing applications using 
this architecture, but we are 
also providing bridges into 
other e n v ir o nm ents so it has 
to be fairly open." 


A number of software devel- 
opment centres are being 
established in conjunction 
with large customers to ensure 
a good fit between the applica- 
tions under development 

Since taking over his new 
job in May, Mr Temple has 
been busy establishing the 
principles of how the new IBM 
will operate internationally. 
The essence of the plan is to be 
able to operate globally and 
seamlessly — "if an Italian cus- 
tomer wants something done 
in Australia, we wQl be able to 
do it without cutting across 
national sensitivities,” he 
says. 

The idea is to get rid of the 
stultifying layers of bureau- 
cracy winch have contributed 
to IBM's corporate sluggish- 
ness in recent years. 

While in the past three years 
Mr Temple has been chiefly 
concerned with curing IBM's 
structural faults, he has some 
telling criticisms of the way 
Ms customers do business. 

"I think many of the big 
financial institutions are con- 
cerned about a lack of connec- 
tion with their customers. Not 
the big corporate bankers - 
they have often excellent rela- 
tionships with large clients. 
But retail banks have poor 
relationships with their cus- 
tomers and, as a result, cus- 
tomer satisfaction is poor.” 

He believes that hanks, in 
spite of yean of inv e stm ent in 
technology, have not created 
effective customer information 


"If you walk into your bank 
as a gold star customer and 
you are asked to fifi in a form, 
then something is wrong,” he 


"Retail banks have a poor 
understanding of which parts 
of the business make money 
and which do not If they don't 
understand the profitability of 
each transaction, how are they 
going to manage customer loy- 
alty?” 

Alan Cane 


WHOLESALE BANKING SYSTEMS 


Still room for enhancement 


I t is easy to take electronic 
links between the global 
banking community for 
granted. The sheer scale of 
automated payments make 
these transactions appear com- 
monplace. The UK’s Clearing 
House Automated Payments 
System (Chaps) bandies £90bn 
worth of payments every day. 
These payments are settled on 
a daily basis, with the danger 
or one participant being unable 
to honour a transaction termed 
settlement risk 
The idea of failure in such a 
system seems faintly ludicrous. 
Chaps has processed up to 
76,000 items in one day - the 
very extent of computerised 
transactions lends the whole 
system a clinical air, but there 
is still room tor Improvement, 
and Chaps has commissioned 
systems house Logica to under- 
take a £3m enhancement of its 
service. 

The aim of this project is 
realtime gross settlement 
(RTGS). Chaps needs to move 
beyond a reconciliation of 
accounts at the close of trading 
and into RTGS. This prevents a 
payment Instruction going 
through unless the sends- has 
funds or central bank backing 
to cover the transaction. 

Logica wrote the original 
gateway software that trans- 
lates Chaps messages into a 
suitable form for the network. 
Now its consultants are mov- 
ing UK b anks to RTGS while 
Chaps continues normal 
operations. 

"It’s an evolutionary change 
that should be implemented by 
the end of 1995,’' says Eric 
Sepkes, a director of the Chapa 
governing body and London- 
based vice-president with Citi- 
bank. Mr Sepkes identifies the 
policy of building on an exist- 
ing system as a Chaps strategy 
- "the whole idea is not to 
start from scratch," he says. 

RTGS migration is one obvi- 
ous path for electronic settle- 
ment systems across the globe. 
But other striking trends are 
emerging in the in ternational 
financial messaging market 
The Royal Bank of Scotland 
joined forces with Banco San- 
tander. Credit Commercial de 
France and Portugal's Banco 


de Comercio e Industria In 
199L Together they launched 
the Interbank Online System 
(fbos), described by the partici- 
pants as a Virtual bankin g 
association, ibos links the cus- 
tomer networks of the partici- 
pating banks without reference 
to existing financial infrastruc- 

tures. 

John Bertrand, managing 
director of Ibos, is blunt about 
the motivation for the £5m 
project. Existing structures 
were not up to the job, he says 
- “the old method involved a 


for the initial phase of 
operations. In January this 
year- the US computer services 
giant Electronic Data Systems 
(SOS) joined Ibos, The Bciyal 
Bank of Scotland's own FT staff 
were able to integrate the first 
incarnation erf Ibos. . 

But EDS made its reputation 
by managing other people's 
technology in a cost-efficient 
manner. By calling in the. 
experts, the Ibos partners have 
tacitly adntitted . that they need 
help in expanding the network. 
EDS will certainly provide 



Average:eotiie«icBtttr«Dir 


Hnanee/Bartang/' 

Insurance. 

' .Manufacturing 

TranspbnARffifieaiTtj 

Communications 

Local government 

Retafl/Wbotesater 

Dis t ribu tion 



The average terge company 2 

In the UK spends £7-3m a year £ 
on info r mati on technofogy. '£ 

(hib aunny to bawd on IBS gowotMI * 


works (SGNVthat flashes criti- 
cal finowrial 

around the globe, fly over GO 
clients. SGST targets medium- 
sized banks that require their 
own secure network: Jar voice 
and data transmission but . are 
not wffling to pay tor^:huge 
in-house project SGN delivers 
computer intelligence in 'the 
form of local processors .and 
appropriate communications 
software. 

“Integration of:: voice and 
data is what the ; market 
wants,” says Peter Hase, SGN 
business . development, man- 
ager. Hase and his .colleagues 
deliver that capability while 
tiie banks stick to ifaeircosre 
activity. It Is a heattby reac- 
tion to tiie heady days of the 
1980s when banks became' pro 
occupied with IF and telecoms 


v. 


'y. , 


flow of payments through the 
correspondent banks. There 
would usually be four banks 
involved in passing on one 
transaction." 

Ibos has been perceived as a 
challenge to worldwide Swift 
international funds transfer 
system. Mr Bertrand is not too 
worried by that perception - 
“Ibos is different from Swift 
we don't compete directly 
because Ibos has evolved to the 
next level Swift is a hub-based 
system with technology dating 
from the 1970s. Ibos allows 
users to send a message direct, 
wherever they want” 

This simple function flies in 
the face of traditional whole- 
sale hanking practice, where 
payments would be passed 
down through the network. 
While Swift's system enjoys 
worldwide acceptance it is 
dependent on this heritage of 
correspondent banks. 

Ibos used network expertise 
from British Telecam and com- 
puters from Digital Equipment 


■ I .**✓*•- v ? 3ft 

i&mwm 


vital technical credibility as 
Ibos trawls for more subscrib- 
ers witting to pay the £50,000 
entrance fee plus another 
£48,000 for annual hardware 
and software rental 

Royal Bazik of Scotland has 
moved its traffic off the Swift 
system and claims a cost-sav- 
ing of 23 per cent on cross bor- 
der transactions. 

The use of third parties to 
handle the nuts and bolts of 
technology is an established 
practice in hanking. Outsourc- 
ing IT contracts Is big busi- 
ness, and tibe market for out- 
sourced corporate telecoms in 
Europe is estimated at $LL7bn 
by 1997. Financial institutions 
will take up a large slice of this 
lucrative trade, and some play- 
os are d iv ersi fyin g from the 
money markets into data 

manipulation 

MW Marshall is one of tiie 
world’s largest money brokers. 
Since September 1992, it has 
operated a wholly-owned sub- 
sidiary, Saturn Global: Net- 


Juhan Wood works with City 
wnnnrri"! and training consul- 
tancy, Profile - his experience 
of working on ambitious 1 IT 
projects within, commercial 
hanks ' during the 1980a has 
convinced him that too many 
institutions still go fuat the 
deep end when investing in IT. 

“A lot of banks haven’t 
really learnt the- lessons of the 
last decade," he says: "They 
still put money into huge, 

jiyitlwiin- - mawnfr 

to cure all ills. What they dm t 
do is get tiie planning cycle 
right They should either take 
a long-term view; and accept 
tiy*t there will be hiccups and 
changes to the specification en 
route. Or they should only 
invest in short-term projects.” 

The rise of operations like 
Sxs and the demand for ser- 
vices offered by SGN suggest 
that a lot of institutions are 
getting out of Wood's over- 
blown ’inter-galactic' projects. 

Logica’s enhancements to 
Chaps win add a new dimen- 
sion to the banking capability 
without a wholesale redesign 
of the -core system. Electronic 
networks are now part-and-par- 
cel of commercial banking and 
many subscribers are learning 
that the smaller, less ambi- 
tious advances offer tiie most 
gain. 

Michael Dempsey 


PAYMENT SYSTEMS 


Now the ‘electronic purse’ 


F or a range of transactions 
other than those involv- 
ing relatively small 
amounts of money, electronic 
payment is now the norm. Con- 
sumers take it for granted that 
they can pay for goods with 
plastic cards, while retailers 
know they in turn will get 
their money through electronic 
funds transfer at the point of 
sale (Eftpos), when customers' 
cards are swiped through 
authorisation te rminals . 

But developments are now 
taking place also at the lower 
end of the scale, which will 
make it possible for a new type 
of plastic cards to be used to 
pay far small-ticket items such 
as parking, newspapers and 
soft drinks. This area is known 
as the electronic purse. 

"Plastic is accepted by con- 
sumers and retailers,” says 
Ken Hansen, managing direc- 
tor of Verifone (UK), a leading 
supplier of the terminals used 
to authorise credit and debit 
card transactions. “Even the 
newer plastic debit cards, 
which take money directly oat 
of a customer's account have 
taken off. In the UK, debit card 
transactions have just sur- 
passed credit card transac- 
tions." 

Individuals carry much less 
cash than they used to. but 
banks would like them to carry 
even less, because it is expen- 
sive to handle. It has to be 
counted and hole-in-the-wall 
automatic teller machines 
(ATMs) have to be kept 
stocked up. More importantly, 
cash does not earn Interest 
when it Is In the consumer’s 


wallet The latest cards, which, 
a number of or ganisations are 
experimenting with, contain 
electronic money or units of 
value. These work rather like 
phone cards and can be of two 
kinds. They can either be 
throw-away cards (such as 
phone cards) or they can be 
smart cards, which can be 
reloaded with units when they 
run out. 

Smart cards look like credit 
cards but have a computer 
chip built-in. This enables 
them to store more informa- 
tion than a simpl e magnetic- 
stripe card. Many banks favour 
smart-card technology because 
the cards have more iwam iry 
and intelligence and can be 
given a multi-purpose function. 
They are also more secure 
because It is harder to dupli- 
cate the information on a 
smart-card chip than a rela- 
tively simple magnetic stripe. 

E xamples of electronic 
purse initiatives Include 
the Danish DanMont 
card, which can be used to buy 
low-cost items; while in Singa- 
pore a combined credit, debit, 
loyalty and electronic purse 
card has been jointly produced 
by a bank and a retailer. 

Shell's loyalty scheme is sim- 
ilar to a electronic purse. Cus- 
tomers who buy petrol from 
Shell service stations get 
paints added to a plastic card 
and these can be exchanged 
later for goods. 

In the UK, Mondex - a Nat- 
West Bank cashless card, the 
British rights to which are 
shared with BT and the Mid- 


land Bank - is to be tested in 
shops in Swindon next year. 
NatWest wants Mondex to be 
used globally and has fran- 
chised it to tiie Hongkong and 
Shanghai Ttankfog Corporation 
for use in several Aslan coun- 
tries. 

As yet, there are no stan- 
dards for the cards, for elec- 
tronic-purse authorisation ter- 
minals, or for machines to 
reload them with units. How- 
ever, a number o£ credit-card 
organisations around the 
world, such as Visa, Master- 
card, and Europay are working 
with other companies to set 
standards for worldwide elec- 
tronic-purse identification 
numb ers (the kind of system 
that enables Visa cards to be 
recognised abroad), the loca- 
tion of the computer chips on 
each card and other important 
details. 

One of the companies 
involved in standardsetting is 
VeriGem, a company set up 
jointly by US-based Verifone 
and French smart-card sup- 
plier, GemPlus. Mr Hansen 
says: "A year ago we saw the 
way things were going with 
rising interest in electronic 
purse cards and falling prices 
of Eftpos ter minals and tele- 
coms links. The ‘electronic 
purse' could be the biggest part 
of the payment market because 
all the low-value cash transac- 
tions added together are worth 
more than the large transac- 
tions.” 

He says many banks are 
experimenting with chip cards 
- and some have products 
which will be very close to the 


likely eventual standard. He 
expects a foil standard to be 
agreed next year. Jack Large, 
of UK-based payment-card con- 
sultancy J&W Associates, 
believes electronic purse tech- 
nology will start to pay off 
when it is brought together 
with account-based debit cards 
such as the UK’s Switch and 
Visa Delta - “from one card 
you will get cash withdrawal, 
payment at the point-of-sale, 
and an electronic purse." 

There are, however, a num- 
ber of commercial issues to be 
resolved. Lars Mleritz, an ana- 
lyst at the Gartner Group 
Europe, says: “We won’t 
achieve a ‘moneyless’ society 
until financial institutions pro- 
vide an incentive to consumers 
to replace cash." 

With electronic purse cards, 
one advantage to the consumer 
might be convenience - “going 
to the ATM is a grudge trans- 
action," says Mr Hansen. Yet, 
electronic money will only be 
more convenient for the cus- 
tomer if refilling an electronic 
purse is easier than going toil 
the cash mar-hinA 

Retailers are starting to 
make Gar more use of the data 
they gain about customer pur- 
chases from electronic pay- 
ment systems. They are taking 
advantage of powerful comput- 
ers (based on massively paral- 
lel processing) to analyse cus- 
tomers’ spending and look for 
new pattern 

Joia Shill ingford 

The writer is associate editor 
of the FT’S newsletter. 
Business Computing Brief. 


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FWANCIAL TIMES 


TUESDAY NOVEMBER 15 1994 


HI 



COMPUTERS IN FINANCE 3 


The number of City dealing rooms is shrinking, says Joia ShiHingford 

Dealers become more selective 


C itydealing rooms are shrinking 

™^ n ovSu I10W , Sf feWer ^ 

1,732 in lam Thi® 3 ™ mpared with 
rnarVrf if 90 ', contraction in the 

attitude l ? U * , e ^ 2 more cautious 
ex Penditure, means 
^PPliers are having 
to work harder for their money. 

wW SS* 1 *** use of standard hard- 
ware. such as personal computers and 

SK^SW- 1 "* resulted - too. to sup- 

fwfc ? * 5*“® abIe t0 differentiate 
{JjEJpJf fa y the computers they sell. 

5£?t9jj* to stand out by 

being better at fusing the many infor- 
mation products which dealers use 
mto an integrated system. This is a 
complex process because different 
news and information feeds use differ- 
ent communications protocols, and dis- 
play data m different ways. 

Important suppliers in the market 
tor equipping d e aling rooms include 
Reuters (which owns Teknekron). Dow 
Jams TJlerate, bt. Micrognosis. Cap- 
ita, ACT Financial, and some of the 
world’s largest computer companies. 
Janet Wood, a spokesperson for Teler- 
ate believes that companies which 
have expertise in communications 
technology (such as information pro- 
viders like Telerate and Reuters) have 
an advantage in this market, though 
BT*s name also appears on a lot of 
dealing-room bids. 

Customers are more interested in the 
information they get on their screens 
t han on the technology they use to 
view it, says Ms Wood. This helps to 
explain why Reuters - the leading 
information vendor in this market - is 
also the dominant supplier of data 
management/dealing systems (with its 
Triarich and Teknekron systems). 

Nearly 200 Teknekron dealer posi- 
tions, based on Unix workstations from 
Sun Microsystems, were recently 
installed at Japanese company, Nomu- 
ra's UK subsidiary’. Peter Green, 
Nomura UK's front-office systems 
director, says they provide data horn 
Reuters, Telerate and Knight-Ridder 
direct to the desktop in a consolidated 
screen environment Instead of the dif- 
ferent services appearing in separate 
windows on the screen, they look as 
though they are all coming from the 
name place. 

Nomura's new system also provides 
real-time spreadsheet capabilities. This 
means that as data comes in from 
information feeds, it can automatically 
update positions (for example the 



Dealers now expect to use larger, dearer computer screens, reports M i e r ovite c , a leading 
supplier of spedaSst monitors. Enhanced liquid crystal display screens are on the way 


amount of a particular share/currency 
held) recorded in an Applix Real Time 
spreadsheet (sold by US-based Applix). 

Mr Green says: “By the end of the 
year, we should have another 100 users 
on the Teknekron system. We're mov- 
ing away from a large host-based deal- 
ing system, to true client-server com- 
puting where processing is 
distributed." 

The company plans to expand its 
dealing operations in a number of 
areas. Nomura is investing more than 
£10m in its new dealing systems. 

According to the dealing-room sur- 
vey, financial institutions will invest 


more than £lbn in new dealing room 
technology over the next 12 months. In 
addition to capital expenditure, they 
will spend a further £l.7bn in ongoing 
costs, including subscriptions to online 
information services and telecommuni- 
cations costs for dealing. Financial 
o nlin e services will account for an 
average 65 per cent of this figure - 
costing about £40.000 per dealer per 
year. 

More than 75 per cent of UK finan- 
cial institutions use a Reuters informa- 
tion service, according to the same sur- 
vey. with its nearest competitors being 
Dow Jones/Telerate. Bloomberg and 


Knight-Ridder Financial. 

But Stephen Kimsey, author of the 
survey, says: “Although annual deal- 
ing-room spending on information ser- 
vices will increase, companies are cut- 
ting back on the number to which they 
subscribe. This now stands at around 
three per dealing room, compared with 
an average of four in 1993." 

This is partly because companies are 
cutting back on “me too' services, and 
partly because some of the lea ding 
information providers have added 
value to their services - winking rival 
services less necessary. 

Improvements include making ser- 
vices accessible through Windows- 
based interfaces (such as those avail- 
able from AT Financial Information), 
adding more historical data, or provid- 
ing information on extra markets 
(such as the Japanese equity market). 
In addition, Reuters has introduced a 
business television service and plans 
to transmit company annual general 
meetings live to dealers' desks. 

But even without TV on the desktop, 
dealers can still suffer from informa- 
tion overload. They have so much 
information crammed on their screens 
that they are starting to want higher 
and higher resolution screens, says 
David Purcell of Micro vitec, a leading 
supplier of specialist monitors for deal- 
ing rooms - "we are starting to see 
demand for CRT (cathode ray tube) 
screens with a resolution of 800 dots 
across and 600 dots down and for 
screens with diagonal screen width of 
15iiL or I7in. The problem is that the 
bigger the monitors, the more space 
they take up on dealers’ desks." 

One alternative is to use LCD (liquid 
crystal display) screens, such as those 
used in portable computers. These are 
much flatter and give off less heat 
Sharp Electronics says its LCD screens 
will be used in a big dealing room 
system, where instead of several over- 
lapping windows of information being 
displayed on a single screen, each win- 
dow will be displayed on a separate 
LCD screen. 

Meanwhile, the systems used by set- 
tlement staff in the back office are also 
changing - “the back-office market is 
developing, with many people down- 
sizing from mid-range systems, such as 
IBM’s AS/400," says Mr Kimsey. Most 
are planning to move to Unix or PC- 
based systems linked to the dealing 
room system. 

“There is a quiet revolution going 
on. For years, the City wasted a lot of 
money on technology. Now people ask: 
*Do we really need it?’. They are more 
interested in functionality than techni- 
cality,” he says. 


The big banks are looking carefully at the costs of 
message transaction, says George Black 

Challenges for Swift 


S wift, the Society for 
Worldwide Interbank 
Financial Telecommunica- 
tion, still dominates the field of 
interbank messaging but it 
faces growing threats from 
other networks. 

The Brussels-based company 
was set up in 1973 to automate 
the function then undertaken 
by telexes. Owned by a consor- 
tium of about 2^00 banks, it 
consolidated its position with 
the launch in 1990 of Swift IL 
After numerous delays in 
delivery and considerable 
teething problems. Swift II re- 
established the organisation as 
market leader and standard- 
setter. The company’s systems 
are used by around 4 ,300 finan- 
cial institutions worldwide to 
process around 500m messages 
a year. 

Swift is now better posi- 
tioned than it was to resist 
competition. The new EFT 
(Interbank File Transfer) tariff 
is seen by customers as offer- 
ing a more attractive proposi- 
tion for bulk transport than 
the older FIN service, which 
was prohibitively expensive for 
some smaller banks. 

Swift is also improving its 
service to customers in the 
trade finance sector and devel- 
oping new EDI (electronic data 
interchange) systems to help it 
expand into trade services. It 
has extended its geographical 
coverage to around 115 coun- 
tries and is shortlisted for the 
contract to run the Bank of 
England’s Crest network for 
share settlement. 

However, although these 
steps have helped to persuade 
most banks to continue to use 
its services, others are looking 
for alternative lower-cost mes- 
sage carriers. Faced with big 
competitive pressures of their 
own, the banks no longer 
regard Swift as the only possi- 
ble network service provider. 

“This could prove a threat 
for the future, though it is not 
one at present," says Roger 
Hedges, product marketing 
manager for ACT’S Midas, one 
or the principal banking soft- 
ware systems. "We are still 
connecting to Swift and we are 
not being wooed by anyone 
else. 

Swift’s chief executive offi- 
cer, Leonard Schrank, admits 


that the organisation had not 
hitherto been run on a compet- 
itive basis - “a civil service 
mentality had crept in. but in 
the past two years we have 
substantially transformed the 
company,” he says. 

Prices have been cut by an 
average of 30 per cent In June, 
Swift announced a 70 per cent 
cut in tiie joining fee in an 
effort to speed up the recruit- 
ment of firms in the East grow- 
ing securities sector, as well as 
a 5 per cent rebate of the 
charge for FIN messages. 

The challenge could, how- 
ever, come from several direc- 
tions. The banks themselves 
may set up their own rival net- 
works. A group has combined 
in a venture called Ibos (the 
Interbank Online System), ran 
by six European banks. 

I bos. which was founded in 
1991 by the Royal Bank of 
Scotland and Banco San- 
tander of Spain, competes 
directly with Swift in its core 
business of international pay- 
ments. The company's claim to 
offer a global service was 
strengthened in January when 
the US computer systems com- 
pany, EDS, a subsidiary of 
General Motors which, provides 
funds transfer services to 
financial institutions world- 
wide, acquired an equity stake. 

Ibos’s managing director 
John Bertrand claims that its 
technology is "the next genera- 
tion" to Swift’s, with much 
greater reliability - "our error 
rate is zero ” he says. 

Mr Bertrand says Ibos has 
letters of intent from eight 
banks wanting to join the 
group, including four of the top 
25 US banks. Ibos's objective is 
to capture 10 per cent of the 
international payments mar- 
ket, with a customer base of 
500 banks, In six years, he 
says. 

Another challenge to Swift 
could come from the national 
telephone companies, either 
individually or as part of a 
group such as the Financial 
Network Association (FNA). 
FNA began intra-bank 
operations early this year, with 
a small number of banks par- 
ticipating. It has members in 
14 countries and is expected to 
add several more soon. 


Another potential competitor 
is the UK-based company Set- 
ter, set up in 1991 by Site, the 
airline reservation system co- 
operative. It aims to meet 
demand for value-added net- 
work services in certain indus- 
tries outside its main business, 

wirhiding fmanflA 

Site's structure and technol- 
ogy are similar to Swift’s and it 
covers more than 200 coun- 
tries. However, Setter's market 
development manager for 
financial services Peter Wag- 
ner says ' that Scitor's services 
are complementary to those of 
Swift rather than competitive. 

“Swift has a narrower focus 
than we have,” he says. “We 
are not trying to take Swift’s 
main interbank messaging 
business, but we are interested 
in the branch-to-branch area 
and in offering cash manage- 
ment services." 

In this area Scitor is more 
likely to compete with EDI ser- 
vice providers than with Swift. 

Although Swift has broad- 
ened its user base to include 
brokers and fund managers, it 
has not offered its services 
directly to multi-national cor- 
porations for fear of upsetting 
its shareholders. 

Shares in Swift are allocated 
by volume of message traffic. 
Tbe top 35 hanks are said to 
generate half the traffic and 
are therefore in a strong posi- 
tion to influence Swift’s plans. 
Some big companies have lobb- 
ied Swift for access to its net- 
work for a limited range of 
transactions, particularly con- 
firmations of payment 

Swift has yet to clarify its 
p lans , but its chairman, Eric 
Chilton, has recently acknowl- 
edged that a debate is going on 
within member-banks world- 
wide on this issue. Most corpo- 
rates do not want to become 
banks, he believes. What they 
need is “straight-through pro- 
cessing facilities" which would 
minimise their costs and create 
standards, he mid. 

This is a key issue for Swift's 
management as it considers 
how best to respond to any 
competitive threat Swift can- 
not afford to delay a decision 
too long. Some corporations, 
like the banks, are starting to 
look for possible alternative 
solutions. 


Client/Server computing is good for your 
people because it gives them easier access to 
more information. It’s good for your business 
because it removes barriers, giving you new 
flexibility to reorganise and to reengineer. 



..-I 




So the question is not whether to explore 
Client/Server, it’s what to look for in tbe 
people who help you. Here’s a suggestion: if they 
don’t have a Jong list of references in multi- 
platform, multivendor integration, and a solid 
knowledge of your kind of business, call someone 
who has; someone like IBM. 

We’ve built and implemented thousands of 
successful Client/Server solutions. What’s more, 
we keep careful track of everything we learn. 

Each Client/Server solution is unique, but 
we’ll compare your situation with ones we’ve 
faced before to give you the direct benefit 
of real-world experience. And, we can help 
you at any stage : from initial consulting to 
implementation . 

So if you’re looking for an experienced 
Client/Server partner, call us first. Simply 
contact your local IBM representative. 


INTERNET: «A Guide to Open Client/Server* is available vis 

1 ) E-Mail: dienl^server^vnel.ibm. com 

2) http:! Ixamv.europe.ibm.comJclient^erver 

3) ftp:! fflp.europe.ibm.com/cticntJserverfdocs 




r 


M* 




... fK , 





FINANCIAL TIMES TUESDAY NOVEMBER 15 1994 



Philip Manchester finds database software companies are 
standardising communications between networks 

Suppliers pool resources 


T he global spread of com- 
puter networks and “elec- 
tronic money” is creating 
a new form of commerce based 
on the electronic transaction. 
At the same time, with the 
growing use of itemised tala' 
phone bills and networked ser- 
vices such as CompuServe, the 
value of each transaction is 
diminishing and so cheaper 
ways must be found to process 
such t ransactio ns. 

“We are increasnigly dealing 
with high volume, low value 
transactions, " says John 
Spiers, UK marketing director 
of database software company 
Sybase. “We need to combine 
processing the growing volume 
of low value transactions with 
new ways to manage and con- 
trol them." 

Database suppliers such as 
Sybase have in recent years 
started to build the mecha- 
nisms needed to process finan- 
cial transactions into their 
database software with the aim 
of reducing costs and increas- 
ing controL 

“You need to be able to cap- 
ture the value of the data 
which emanates from transac- 
tions so you can exploit the 
information," Mr Spiers says. 
“A company like American 
Express, for example, can gear 
its marketing to Individual 
purchases on a customer’s 
monthly bifl. If you hire a car 
or book a hotel room, it can 
use this data to provide cus- 
tomers with information about 
these activities.” 

Pamela Pipe, a database 
product manager at software 
specialist Information Builders, 
sees the hidden value of the 
information in financial trans- 
actions as an opportunity for 
companies to gain a competi- 
tive edge - "the number of 
financial transactions is grow- 
ing and this is driving people 
to find ways to analyse their 
data to find the value in it 
“You need the operational 
performance to process the 
transactions. But you also need 
the tools to bring out the infor- 
mation content - to pull out 
trends, to focus marketing and 
inform decisions about prod- 
ucts." 

Mrs Pipe also emphasises the 
need to draw together different 
data resources - possibly from 
different computer systems - 
to give a high-level view of a 
company’s information: "We 
are working with large finan- 
cial or ganisatio ns - h anks and 

insurance companies - to look 
at the information spread 
around the network on a vari- 
ety of databases. They need to 


blend these together with their 
legacy systems to get the real 
value from them,” she 
explains. 

In spite of rivalries, database 
software companies are 
starting to cooperate in order 
to bring different data resource 
together. Information Builders 
is working with Oracle and 
IBM, among others, to create 



Ftoanciaf managers are demanding 
on-flna analytical processing 
(Olap) toots to improve corporate 
decision-making 

the concept of the information 
warehouse. 

This allows companies to 
treat their data as a single 
coherent database which can 
be accessed by every employee. 
For example, databases can 
now refer to each other using a 
language called SQL. Origi- 
nated by IBM. SQL standar- 
dises communications between 
databases and allows a variety 
of tools to access data from the 
desktop. 

SQL, by enabling the spread 
of databases across different 
computers, allows companies 
to take advantage of cheaper 
hardware. Traditionally finan- 
cial transactions have been 
processed and stored on main- 
frame computers. Increasingly, 
the same tasks can be carried 
out on cheaper PC-based hard- 
ware. By combining many PC 
processors in what is called a 
parallel processor, transactions 
can be processed and the 
results stored on much cheaper 
hardware. 

Neil Morgan, a marketing 
manager at Oracle UK, sees 
parallel processing as the 
future of high volume transac- 
tion processing - “with Oracle 
7.1 we have added parallel 
query and update processing 
and we are seeing an order of 
magnitude improvement in 


response times and through- 
out. This means companies 
will be able to afford to process 
these low value transactions." 

Oracle is also using the flexi- 
bility of more powerful PC 
hardware to lower the cost of 
setting up new transaction- 
based systems. Mr Morgan 
cites the example of a new 
credit card company. “They 
needed to be able to set new 
members up quickly so they 
have used a PC as the database 
server for the customer data- 
base. The transactions are pro- 
cessed on a larger systems but 
the basic set up for new mem- 
bers is carried out on a £20.000 
PC system which supports over 
100 users 24 hours a day.” 

This is possible because Ora- 
cle’s database software works 
on different computers, from 
PCs to mainframes. Hus Is a 
trend echoed by other database 
software suppliers including 
IBM. “We can offer the same 
database technology right 
across the range - including 
computers from other suppli- 
ers.” says Janet Pema, director 
of database technology at 
IBM's Toronto laboratory. 

IBM’s DB2 has filtered down 
from its mainframe computers 
to its mid-range and personal 
products, bringing the same 
features to each level. At the 
same time, it lets customers 
access data from other suppli- 
ers* database software includ- 
ing Oracle and Sybase. 

Ms Pema says that custom- 
ers want better access to their 
data - wherever it might be. 
She says the trend towards cli- 
ent/server computing - which 
gives users desktop power and 
access to company databases 
on the network - is a part of 
this. “The motivation for cli- 
ent/server computing is to give 
users a better interface to their 
data and make new applica- 
tions easier to use.” 

However, this approach 
causes systems management 
problems. The need to bring a 
variety of data resources 
together and make sure that 
they are used properly makes 
the underlying software much 
more complex. 

Database software suppliers 
are acutely aware of the prob- 
lems of coping with the explo- 
sive growth of electronic finan- 
cial transactions have a 
wide range of solutions to 
offer. What is encouraging is 
that they are all moving in the 
same direction and making it 
easier for customers to pick 
and choose the tools they use 
to accessing and manag p their 
data. 


I t is an article of faith that 
hackers and fraudsters 
never even think of attack- 
ing financial institutions. And 
were such an unlikely event to 
occur, they could not possibly 
succeed in penetrating the 
physical and electronic secu- 
rity that protects the cash and 
data assets of these respected 
bodies. 

This is the diplomatic line 
that all banks adhere to, even 
as they invest millions of 
pounds in security measures. 

The truth is that hanks are 
seriously concerned about the 
rise of ingenious hackers and 
the growing awareness of com- 
puter fraud as a practical crim- 
inal tactic. 

Paul Rogers is marketing 
manager for self-service 
systems at AT&T’s UK com- 
puter arm - the company sup- 
plies 70 per cent of the Auto- 
matic Teller Machines (ATMs) 
in Britain. 

Mr Rogers agrees that most 
attacks on ATMs are physical 
assaults aimed at wrenching 
out the cash box, but that is no 
cause for complacency. 
“Designing ATMs is a case of 
trying to keep one step in front 
and making an effort to pre- 
judge what could possibly hap- 
pen,” he says. 

Mr Rogers is determined to 
pre-empt the resourceful 
hacker. He notes that the latest 
generation of ATM is based 
around the industry standard 
OS/2 computer operating sys- 
tem. The core of tins cash dis- 
penser is no different from 
office personal computers that 
have sold by the million 
11113 is a mark of the tri- 
umph of open systems and 
common standards, but it 
throws up an unpleasant pos- 
sibility - because there are 
many people out there with an 
intimate unders tanding of the 


COMPUTER SECURITY 


Worries over fraud 


OS/2 platform. How can poten- 
tial backers be discouraged 
from turning this knowledge 
against AT&T’s clients? 

Mr Rogers’ answer is to cre- 
ate a customised security shell 
around the central chip and its 
software - "we give the cus- 
tomer an open system, but we 
protect that system from risk 
Our Self Service System Soft- 
ware (S4) will not allow a thief 
to breach an ATM and then lay 
another program on to the sys- 
tem or download customer 
information that's stored on a 
remote host computer." 

Fraud Involving cash and 
credit cards remains a big 
problem, however. 

F r ank Hickman is a prin- 
cipal consultant with 
Unisys, the computer 
systems company. He joined 
Unisys from consultants 
Touche Ross where he investi- 
gated the practical applications 
of artificial intelligence (AI). 
Put simply, AI is a field of 
technology that attempts to 
replicate the human brain 
through computer pro- 
grammes. 

Despite many dubious claims 
by developers in the past, AI 
seems to have thrown up a use- 
fill product in the form of neu- 
ral networks. 

“Neural technology means a 
program can be shown many 
examples of a process and can 
then understand and discrimi- 
nate within that data or pro- 
cess,” explains Mr Hickman. 

This search for a recognisa- 
ble pattern has an instant 


attraction for banks. The speed 
of credit card transactions 
makes spotting a stolen or 
counterfat card more difficult 
Some institutions such as 
the Royal Rank of Scotland 
claim success in the battle 
against fraud by adding 
account holder photographs to 
bank cards. But check-out staff 
under pressure might neglect 
to check a signature properly 


motorway system." ‘ 

While banks have to protect 
themselves from the fraud that 
springs from common theft, 
they are also-.coming under 
increasing pressure to regulate 
the kind Of fittida flowing jntn 
accounts. In ternational frritin- 
tives against drag trafficking, 
and organised crime can have 
expensive consequences for 
financial Institutions 


Motoring. ts% 


Where does card fraudtaio 

Jr. ■ -.TtT 

1- *'*&&*■. 



so there is no guarantee that a 
photo will be any more likely 
to grab their attention. 

ff a neural program can sit 
on tiie network and spot a 
break from the typical spend- 
ing pattern of one consumer, 
then fraud can be intercepted. 
This solution means looking at 
the transaction itself - and 
that can only be done using 
clever software. Mr Hickman 
characterises the problem as 
“M25 fraud - thieves zooming 
between superstores via the 


The US Treasury now 
requires banks to uns ure that a 
transaction is not destined for 
an account that has been 
Mnrirpd on grounds of criminal 
mirnarttons . 

The Treasury’s Office of For- 
eign Asset Control (Ofac) can 
impose a fine of $10,000 - 
$500,000 for eachexample of 
non-compliance. So the total 
finp for a series of infractions 
could run fntn millions of dol- 
lars. A bank may only be one 
stop in a chain erf destinations 


that culminates in" a hank 
account with a . blacklisted 
c o unt r y dr' individual. But it 
that bank is “the first stop” the 
funds make in the US, then it 
is culpable. 

„ When: Ofac issued Its black- 
list of embargoed accounts, 18 
jwwrfha ago,- the US arm of the 
.UK systems house Logica set 
about devising a solution for; 
hanks that could sot inpiittor 
every transaction ma n u al l y. 

Its response ta this problem 
of inadvertent . monByJauhder- 
fng js "Hotscan, launched In - 
. September! This is a-$25,QQQ 
program that automa tical l y - 

an payments and mes- 
sages, against a. database, of. 
blockedaccounis. 

Hotscan resides on - a per- 
sonal computer but is linked to 
' the bank’s own payments sys- 
tem. At the final stage of pay- 
ments processing, Hotscan 
refers aaCh transaction to. the 
blacklist database. If it spots a 
' mateh. Hotscan flags the trans- 
action indicating that action is 
necessary. - 

According, to Philip Izzo, 
senior vice president for Inter- 
national funds transfer with 
Logica in Boston, Hotscan has 
already made its mark - "the 
Bank ; of Nova Scotia' in New 
York is the first Hotscan rite to 
go live," he says. “In the first 
hour of operation, Hotscan 
caught out a payment going to 
a bad guy!" 

Mrlzzo reckons that Hotscan 
wfll soon be in action in 
Europe -- “we developed it 
with an eye to the future: we 
hear that maneyjaxmdexing is 
a concern . in the UK. US regu- 
lators have .become' more 
aggressive with the hanking 
community, and there are sag' 
gestions of more mandatory 
controls in rest of the world.” 

Michael Dempsey 


M iddle managers in Brit- 
ish financial services 
companies have for sev- 
eral years successfully closed 
r anks a gains t the large scale 
introduction of document 
tmagp processing. 

The larger the institution, 
the more layers of middle man- 
agement it has and the less 
inclined it has been to embrace 
image processing on a large 
scale. A large number of jobs 
are at stake. 

Only in autonomous or 
green-field operations without 
such a bureaucratic heritage 
have image systems been 
widely installed. 

Most financial firms remain 
intensively paper-bound. The 
rise in their office productivity 
in the past decade has been 
minimal compared to that of 
the manufacturing sector and 
they still await their equiva- 
lent of the just-in-time systems 
revolution. 

Imag in g has the potential to 
bring huge savings an storage 


DOCUMENT IMAGE PROCESSING 

Middle managers close ranks 


It's true. 

Success at work is all about 
makin g the ri g ht connections. 


The effectiveness of IT strategies h critical in deciding the 
future productivity and prosperity of your business. Within those 
strategies, one issue increasingly demands attention - bow to optimise 
hardware Investments and the resources they represe n t, by making 
those resources available to PC users, as part of a truly enterprise-wide, 
platform-independent network. 

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can be addressed easily, flexibly and affordably whatever your needs. 


NetWare for SAA. NovelTs NefWare-to-tBM host communications 
platform, s upports the transparent and flexible integration of mainframe 
and minicocnptttCT environments into PC networks. LAN WsrkPUce wffl 
perform the same function far UNIX systems. While NetWare Connect 
incorporate s isolated work groups and standalone workstations torn the 
corporate aeiwork. 

They're notations that wiH work successfully for you. As they do 
already for people Eke you. 


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Kent Coun cil 

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How the AA 
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technology gave us the abffity lo configure our 
network to respond specifically to the job in 
hand. LAN Workplace has allowed ns to 
access out UNIX boxes_and use the 
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customer service. 

When you sit back and analyse the 
technical complexity of setting up a network 
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systems, finding a product that is both 
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enh- LAN Workplace has the deliverables for 
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Automobile Association. 


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What can be 
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“With NetWare for SAA. we believe 
we have a versatile solution that contributes In 
the core of our c ur rent and future IT strategy. 
NetWare for SAA has been a vital component 
in making this work. 

The main advantage— ia that we no 
fooger tune to re-boot our PCs every time we 

need to switch between our AS/400 and UNIX 
and VAX hosts. 

This saves us so much time. We have 
direct access to all information on the 
network. I find it hard to imagine how we 
coped prior tom traducing NetWare for SAA." 

Raf Snowden. Strategic Development Manager. 
Had County Council 


“When we were asked to look ax 
Novell's NetWare Connect, we wanted a 
mature and refiable product that would adapt 
and work with new products entering the 
market. The beauty of NetWare Connect is 
that it allows yon to work with additional 
products as wefl as interfering with NetWare. 

The prospect of introducing NetWare 
Connect as a connectivity tool to input data 
directly into our PCs b an excellent one. We 
would not bestale to recommend ix to any of 
oar contemporaries." 

Peter Atteba, Special P rotects Coordinator. 
Salford Urbserafy 


1NOVELL. 

The Am, ftmwrt and ftihre of Network Computing 


space and to simplify office 
routines drastically. So far that 
potential hae not been fulfilled. 

But the middle managers 
may not be able to hold out 
much longer agains t this type 
of automation. Systems suppli- 
ers are confident they will soon 
be able to convince boards of 
directors that they cannot do 
without the new technology. 

Once critical mans has been 
gained, image processing could 
proliferate in the same way as 
word processing did in the 
1980s, affecting the prospects 
for middle managers much as 
word processing did those of 
typists. 

This threat has been staved 
off so Ear partly because middle 
managers have claimed that it 
was impossible to do away 
with paper because paper gave 
them the structure of their 
work. Without it people would 
not know what to do next to 
process a claim on an insur- 
ance policy or authorise a loan. 

This argument is being 
undermined by the progress of 
workflow systems, which can 
take over the task of supervi- 
sing the sequence of actions. 

W hile no convincing cost 
justification could be 
made for adopting 
image processing from the 
early implementations which 
began in the mid-1980s, David 
Allcock, marketing manager 
for Wang UK’s workflow and 
imag in g division, insists there 
is now strong evidence that 
image processing can cut costs 
and Improve customer service 
and staff morale. 

At Bir mingham & Midshires 
Building Society, for instance, 
the average time taken to 
approve a mortgage applica- 
tion up to the point of an offer 
has been cut by image process- 
ing and workflow systems from 
five weeks to three. 

A study by the society 
revealed that out of the five 
weeks which the task had been 
taking the actual processing of 
the application took only seven 
and a half minutes: the rest 
was all waiting time. 

The new systems have 
enabled inquiries to be carried 
out in parallel instead of in 
sequence, according to the 
society’s head of lending ser- 
vices Chris Marney - “a file 
can be in several people’s in- 
trays at once. It's no longer so 
easy for a file to go missing. 
And without a pile of paper on 
their desks the staff feel a lot 
better about their worth" 

At the TSB, a productivity 
improvement of about 20 per 
cent resulted from a rationalis- 
ation of the processing of gen- 
eral insurance claims. This 
involved the Introduction of 
image processing and work- 
flow systems. Fred Shaftoe, 
TSB’s director of customer ser- 
vice for general insurance, 
says the benefit came mainly 
from brin g in g discipline into 
processes which were previ- 
ously “a bit of a shamble." 

“When a customer calls you 
can answer the Inquiry at 
once, instead of having to get 
up and search for the file, 
which is impressive," he says. 

In some European countries 
bank statements are being 
issued to customers Incorporat- 
ing miniature copies of their 
cheques. This service has not 


only reduced the number of 
queries bat proved popular and 
has spread from Switzerland to 
Austria and Belgium. British 
banks have yet to approve its 
use. 

Another argument often 
used against investing in imag- 
ing was its high cost hi a pro- 
prietary mainframe environ- 
ment. But as the prices of 
powerful wor ks tations and per- 
sonal computers have fallen 
sharply, it now looks much 
more attractive to downsize to 
client/server systems using 
these machines. The cost of 
installing imag e systems is 
proportionately lower. 

Images are stored on optical 
disks; a 5.25-inch disk can hold 
about 30,000 A4-sized pages and 
a jukebox of disks can hold 
10m gigabytes of data. 

Phillip Jones, an account 
manager for software supplier 
Filenet, estimates that it Is 


now possible to support four 
timoR as many users at a quar- 
ter of the cost needed five 
years ago and to store four 
Hmpg as many documents. 

Many applications involving 
documents in finance compa- 
nies look ripe for automation. 
Most of these companies 
already use scanning to cap- 
ture a customer’s initial hand- 
written inquiry, but few of 
th^m follow this through the 
entire system to gain the foil 
advantage. 

“The market . leaders are 
beginning to make strategic 
integration of these systems, 
bat they are still the exception 
rather than the norm," says 
Steve Ball, a product market- 
ing manager far Rank Xerox. 

The systems usually come 
from several different vendors, 
so that such integration 
demands the creation of a new 
set of standards. A central 


standard is likely to' be Post- 
script, the document reproduc- 
tion system developed by 
Adobe Systems, which recently 
merged with the desktop pub- 
lishing firm Aldus. 

An important emerging stan- 
dard is Den, the document 
gnnbHwg networking standard 
which is backed by a group of 
systems vendors led by Xerox 
and the network software com- 
pany Novell 

Recently they have been 
joined by several other signifi- 
cant forces in the industry, 
inducting a subsidiary of East- 
man Kodak and the leading 
database sandier Oracle. 

The likely rapid spread of 
image processing systems may 
cause alarm among the thou- 
sands of people in the supervi- 
sory. tiers of finance compa- 
nies. ’ 

But Mr ABoock of Wang UK 
argues that they can only 
avoid redundancy by welcom- 
ing the technology and acquir- 
ing - the new sMlh which wiQ 
be in demand, not by continu- 
ing to try to block its advance. 

George Black 


SOFTWARE DEVELOPMENT 

Rapid delivery vital 


T he ability to build pro- 
grams quickly has 
always been a goal for 
computer software developers. 
Users always want their new 
applications immediately and 
seldom understand why it 
takes so long to translate their 
requirements into working 
code. 

Over the past decade, test 
delivery of new software has 
become more viable, partly 
because hardware and soft- 
ware technologies have 
unproved but also because the 
techniques for building soft- 
ware are better understood. 

Software construction can be 
viewed more as an exercise in 
engineering than the arcane 
craft it once was. Applications 
can increasingly be assembled 
quickly from pre fabricated 
components rather than carved 
from solid blocks of stone. 

The competitive nature of 
financial services makes fast 
delivery of software more 
important than in many sec- 
tors. So it is no surprise that 


banks and insurance compa- 
nies are pioneers in what has 
come to be called Rapid Appli- 
cations Development (Rad). 

Early experiences of using 
Rad techniques show that com- 
panies can make new applica- 
tions work fast enough to gain 
an edge over their competitors. 

David Sprott, marketing 
director of Texas Instruments’ 
software division, says: “An 
investment company we are 
working with in the US suc- 
ceeded in putting in an advice 
system in 10 months instead of 
two years.” 

T he system had to provide 
a service, giving invest- 
ment advice to the public 
via a touch-tone telephone net- 
work - “using our tools and 
Rad techniques, it was able to 
buQd the system in phases and 
deliver it well ahead of the 
expected schedule," he says. 

The Sumitomo Bank Is 
another example. It used Rad 
techniques and development 
tools from the software sup- 


plier Uniface to build a bond 
lending and tracking applica- 
tion in eight months. 

But Mr Sprott says that 
although tools are important, 
there is much more to Rad 
than automating the produc- 
tion of programs -“it’s more 
important to see it as a set of 
management processes. Yon 
need a method to allow you to 
put software together that 
suits the business problem." 

He identifies user involve- 
ment, “tuneboxing” and what 
he calls iterative development 
as being as important as the 
tools. Texas Instruments 
moved into toe Rad market 
from a strong base in comput- 
er-aided software engineering 
(Case) where its Information 
Engineering Workbench (IEW) 
has long been a respected soft- 
ware tooL Its experience in the 
Case market has shown that 
tools must exist against a back- 
ground Of SOUnd managwnant 
and an understanding of users 

Continued on facing page 


# 

0 



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★ 

COMPUTERS IN FINANCE 5 


V 


f 


MULTIMEDIA SYSTEMS 


A vision of the future 


W 

equally hani tosMtamMt mai ?y find i 
business beyonTa^Si™? 11 ** ^ bj 

such * 

J5gJS»*® W»t graphical ua. 

WiWMSSl—- r «* istan <* 
ported qJSSToiffSSL^ 

saSfS" a °“-^ 

°gy would have on workS^SSc^ 01 

M teiHVf 16 idea of a PC withoul 
S indows or a comparable GU] 

S”“5L ^ il ■*“ «5r SI 

SrtJJJ! L^L PUter multimedia 

«“ be as dated as the origina ] 

EStFrn * “ter- 

There ^ is some way to go, however. A 
survey by Touche Ross earlier this year 
£5S^af - ta rtto of much umtta 
1 technology, more than two 
tfima of UK companies had no plans to 
useifc - mainly because of the lack oi 
useful applications at present. 

Robert Baldock, a partner at Andersen 
Conrolting, says that the fmnm*. sector 
cowd take the lead in using multimedia 
technology - “there are changes evident 
in the way that retail financial services 
are structured which will matp multime- 
dia important,” he suggests. “People are 
using bank branches less and less and a 
trend towards telephone hanMng is emerg- 
ing. Mi d l a n d, Bank, for example, set up 
First Direct because of this and others 
have followed. Consumers are saying that 
they want convenience and faster 
response to their needs. Multimedia tech- 
nology offers a way forward.'’ 

Mr Baldock is putting these thoughts 
into practice on a pilot project with the 
Nationwide Building Society aimed at 
creating what he calls a “virtual bank.” 
“The idea is to create an environment 


on the screen which allows customers to 
browse through the banking services at 
their leisure.” he says. “We have done this 
by building a prototype Triosk* which rec- 
reates a real bank. The opening screen is a 
picture of a hank in the High Street You 
can ‘walk* in through the door and move 
around in a three-dimensional graphics 
environment - pointing at things and see- 
ing how they react” 

Mr Baldock says to develop an element 
of Am in the virtual bank every item on 
the screen reacts to the user. “There is a 
pot plant in the lobby which, when 
painted at will bloom. There is also an 
infra-red remote control to activate videos 
an various hanking sendees. If you go up 
to a counter, you can activate a videocon- 
ferencing system which lets you speak 
directly to an adviser and so on." 

The system is only at the concept stage 
but a production version is planned and , 
ultimately, the virtual bank will be avail- 


Muftrmedia systems wfil offer 
banking customers a faster and 
more convenient service 


able across a network for home use. 

The convergence of multimedia and net- 
working will serve as a stimulus to both 
technologies. Recent advances in network- 
ing will soon make it possible to offer a 
wide range of multimedia services in the 
home - and virtual banking promises to 
be one of first 

Home banking Is one of the leading 
applications of multimedia and network- 
ing technology, according to Anne Perl- 
man, vice-president of multimedia at US 
computer manufacturer Tandem. “We are 
finding our customers are moving toward 
multimedia in fitianrial services, although 
it is Stoi early in the cycle. The network- 
ing technology will let us take this into 
the home and the multimedia technology 

will make it attractive to consumers,” she 
says. 

But Ms Perlman notes that home bank- 


ing alone is not unlikely to cause a break- 
through . She sees it as part of a range of 
networked services - “our research shows 
that people like a range of services: video 
on demand, video-conferencing, home 
shopping and. of course, home banking. It 
is when all these are brought together that 
people start to get interested.” 

Tandem is also looking at combining 

multimedia technolo gy with existing data 
processing technology - especially In the 
area of processing financial transactions. 
Ms Perlman says that multimedia provides 
an ideal way to present multi-dimensional 
information based on traditional data pro- 
cessing. 

“We can see multimedia giving us ways 
to put lots of different variables together 
on a screen and show thing s like company 
performance. If you wanted to look at P/E 
ratios, risk exposure and stock variations 
over a period of time, you need to present 
the data in three dimensions. Multimedia 
technology lets you do this.” 

Tandem has also looked closely at the 
system management problems associated 
with the convergence of multimedia, net- 
working and traditional data processing. 
Transaction billing, mail order and royalty 
collection present special difficulties, says 
Ms Perlman. There are so many different 
billing and payment methods involved in 
multimedia networks and we have not, as 
yet, been able to find suitable software to 
do this." 

Tandem is working with 32 of the 
world’s top telecom companies on tele- 
phone billing systems and expects signifi- 
cant growth in transaction billing as the 
number of multimedia “content” providers 
increases. 

This is likely to change the way people 
buy and sell products. Mr Baldock of 
Andersen Consulting sees the changes 
beginning to have an effect on banking: 
electronic transactions as a percentage of 
the whole rose from 20 per cent in 1385 to 
37 per cent in 1992. He expects this to rise 
to 40 per cent by the year 2000. 

Philip Manchester 


User case study: Leeds Permanent Building Society 

Award-winning strategy 




o chief executive? No worries, if the 
latest results of the Leeds Penna- 
_ J nent Building Society are anything 
o go by. Anyone examining Leeds' prom- 
sing 1994 results might be forgiven for 
hinking that its board’s 18 -month long 
earch for a new chief executive is almost 
rrelevant: the UK’s fifth largest building 
ociety is already in good hands. 
Moreover, according to John Miller, 
xecuiive director in change of inforina-, 
ion systems, the Leeds is setting its sights 
rider, and higher, than being just the the 
ifth largest building society. 

Tf you look at it in terms of the wider 
umpetitiva base of banks, bufiding society 
ind insurance companies, then we're no 
anger in the top 10. Our strategy is to be 
he best provider of home and family ser- 
rices, and that mission is still valid.” 

Mr IfiBer Is one of what he calls “the 
roika” - the team of three executives left 
it the top when former chief executive 
tike Blackburn left to take charge of the 
lairiav Building Society in February 1993. 
Under Mr Blackburn, the Leeds prided 
(self on innovation, and information 
y stems came high on the agenda. The 
earn he left in charge (all appointed from 
utside the mainstream of the building 
ociety world) has proved its worth, mov- 
ng the Leeds forward in the afte rmath of 
he recession. 

The Leeds has delivered record finan cial 
esults and developed innovative ventures 
nch as Leeds Life, the new life insurance 
ompany, and. Leeds Unit Trust, an 
o-house unit trust c om pany, in the care- 
aMng h ands of finawrial director and act- 
ng chief executive, Roger Boyes. A year 
go the Leeds’ brief flirtation with the 
National & Provincial came to nothing, 
nd it Has continued to re-infarce its own 
rands, such as Liquid Gold and the Home - 
Lrranger, with extensive television adver- 
Ismg. 

hi the 1993 annual accounts and direc- 
ors’ report, Mr Boyes put on record (and 
iptfont) his belief in the need to change, 
nd keep chang in g : Tf we are serious 
bout putting the customer first, then 
lo Hring about the way we do things, the 
ray we’re organised or the products and 
ervlces we offer can remain unchal- 
anged.” 

Commer cial director,. Chris Chadwick 
iversaw the business process management 
aitiative, which asked staff to participate 
a an overfund of procedures, with the aim 
f making the entire organisation more 
esponsive to customers’ needs. More than 


7,000 suggestions for improvements were 
forthcoming, according to Mr Chadwick - 
"some have been small and incremental, 
others have meant re-engineering our 
systems.” 

A big re-engineering process has already 
taken place over the last year with the 
development of a unified customer data- 
base, the first step in customer-focused 
services. 

Bringing about the change in informa- 
tion systems is John Miller’s job. Although 
there was a strong technical emphasis 



John MDer: “Customer-care comes first” 


when Mr Miller arrived at the Leeds three 
years ago, he found an IT department that 
waited to be told its role - “the organisa- 
tion was in technical response mode. The 
IT people regarded their jobs as transla- 
ting the needs into a technical solution, 
not actually identifying the needs.” 

Leeds' operational systems, explains 
MiDer, had to be re-aligned “to recognise 
customers as individuals, rather than a 
series of account numbers.” As in many 
fmanrini institutions, there bad been sig- 
nificant investment in separate applica- 
tions, running on different computers. 
Mortgages, savings accounts, such as liq- 
uid Gold, and general and life insurance, 
were afi separate products, with account 
numbers which attached the customer to 
that particular product, regardless of other 
products or services. There were 4^m cus- 
tomers, but 7m customer records. 

The aim was to create a unified, custom- 
er-oriented database which would mahie 
the Leeds to recognise its customers as 
users of multiple services, and to satisfy 
their needs in different areas by cross-sett- 


ing further services and new products. 

Olivetti, Unisys, and IBM. mid BT were 
already the main technical partners. The 
IBM mainframe-based mortgage package 
had been augmented in 1990 by a Unisys- 
based package of software and hardware. 
In tiie late 1980s, more than 420 branches 
had already been automated and net- 
worked using Olivetti’s IBIS cashiering 
and counter-top applications, running on 
linked PCs. 

The branches had to retain the ability to 
give instant decisions an important ele- 
ment in a competitive market - “we put 
the emphasis on a strong service proposi- 
tion, such as the Home Arranger," says Mr 
Miller. “At the moment of truth, eyeball - 
toeyeball with the customer, the person in 
the branch has to have the ability to say 
yes, without referring things elsewhere.” 

Mr Miller's strategy was to build on the 
existing Olivetti workstations that already 
provide all the familiar front-end facilities 
in the branches, with IBM’s DB/2 rela- 
tional database in the background. It “slid 
in" to replace the former IDMS. so that 
end-users in the branches did not even 
realise there had been a change, apart 
from having more facilities. 

The DB/2 database meant we could 
look at the customer and tell all the prod- 
ucts - mortgage, visa card, unit trusts, 
whatever - they were using. First, it gives 
you cross-selling ability, secondly you can 
be more responsive to individual customer 
needs.” 

Information systems played no small 
part in the break-off in negotiations with 
National & Provincial a year ago: it would 
have been impossible to integrate the two 
product lines and supporting systems. 

Leeds takes pride in its robust attitude 
to IT as a servant, not a master. This year 
it became the first UK building society to 
achieve frill Iso 9000 accreditation. It has 
won the Alan Taylor Award for informa- 
tion systems training, and won the British 
Computer Society Hay Award for excel- 
lence in IT management 

One of Mr Miller’s tasks has been to 
lower unit operating costs, and concen- 
trate on service satisfaction. A possible 
route forward is document management - 
about to be piloted in one specific area. 

“We’re not just automating what’s hap- 
pening at present but answering a differ- 
ent question: ‘Can we do it differently, and 
improve productivity by an order of mag- 
nitude?'," he says. 

Claire Gooding 


Survey among UK financial Institutions 

Percentages pursuing a Unix-oriented strategy 

■ 1993 

YES 

NO 

No, but 
considering 

Don't 

maw 

Bwiks and 
buldtog societies 

484 

104 

304 


Insurance and other 
ffnmrrfiH g in**iT'i? 

454 

356 

ISA 

_ 

U 1994 





Banks ml 

todeStM 

340 

S1.1 

1Z8 

2.1 

tontance and other 

ftuKU sedan 

308 

57.7 

as 

1M 

i 

! 

i 

1 

1 

1 

1 

1 


SUPERCOMPUTERS 


Wall Street 
leads the way 


I magine that an Investment 
house managing funds 
wants to identify high, 
medium and low-risk targets 
for its cash. Imagine, too, that 
it wants to halnn/-* the funds 
between the three risk types 
and analyse the rates of 
return, both planned and 
expected, from each type of 
risk. What are the IT problems 
facing the investment house? 

If the Investment house 
operates In global financial 
markets, the varying economic 
situations around the world 
would have a profound impact 
on the ability of that invest 
ment house to say accurately 
what may or may not happen 
to its clients’ funds. Investing 
millions of pounds in equities 
or bonds, and switching funds 
between currencies around the 
world, adds to the complexity 
of the finance house's prob- 
lems. 

This investment house 
clearly has vast quantities of 
data to manipulate and wants 
to perform complex financial 
calculations on these data. 
Where can it turn for support? 

Unusually, a few financiers 
are turning to supercomputers 
to manage their data, the 
supercomputer vendors are 
certainly eyeing the finance 
markets with increasing inter- 
est. 

A year ago, Merrill Lynch, 
one of the largest stockbrok- 
ing firms in the US. estab- 
lished a blueprint for the use 
of supercomputers in finance. 
It is believed to have paid 
S1.75m for a Cray Research 
MP2E, a twin-processor 
machine intended to give the 
firm greater power to handle 
its trading activities. At the 
time, Mr John Galonte, a Mer- 
rill Lynch vice-president, said 
simply: “We want to improve 
the timeliness of some of our 
calculations.” 

Merrill Lynch is not the only 
broking firm to introduce 
supercomputers, says Paul 
Clarke, brand manager for 
POWERParallei Systems at 
IBM in London. "But the lead- 
ership here is in the US, on 
Wall Street,” he says. 

Some Wall Street users say 
the technology brings such 
significant competitive advan- 
tage that they refuse to be 
identified, he claims - “cus- 
tomers won’t allow themselves 
to be referenced because of the 
competitive advantage these 
machines bring them, but 
there are probably a handful 
of users out there at present” 
Mr Clarke is brand manager 
for one of IBM’s super- 
computers, the SP2, a machine 


be describes as a parallel, scal- 
able computer. The end-user 
price for the SP2 was about 
£500,000, but a stripped down, 
entry-level version costs from 
£200,000-£250.000, be adds. 

So far, there are no users of 
the SP2 in the UK - the 
machine was only launched 
earlier this year, but financial 
users are at least beginning to 
discuss supercomputing. 

"We are in the process of 
setting up a meeting with UK 
banks,” says Mr Clarke. "Our 


scientists from the IBM m«Hi$ 
Centre in Paris will talk to onr 
customers to find out what 
they want For example, cus- 
tomers are telling us they’re 
wasting millions in asset and 
liability management.” 

Supercomputers can help, he 
suggests. So what are the 
advantages of these high-per- 
formance machines, capable of 
processing vast amounts of 
data extremely quickly? 

In the last two to three 
years, IT managers in the 
finance world have been see- 
ing supercomputers used for 
maths-based services, in gen- 
eral engineering applications, 
weather fo re c as ti ng and so on. 
Now there appears to be a real 
role for them in solving com- 
mercial problems. The range 
of problems they can solve 
Inclu d e financial analysis aw| 


planning; optimisation; risk 
analysis; pattern spotting and 
portfolio analysis. 

In essence, supercomputers 
can use a number of mathe- 
matical disciplines simulta- 
neously, making complex cal- 
culations such as simulations 
and real-time trading analysis 
relatively straightforward for 
the finance house. 

So will finance houses move 
away from current systems, 
mainly Unix-based workstat- 
ions, and adopt supercomputer 


technology over the next five 
years? 

A recent survey by the 
research company. Interna- 
tional Data Corporation, 
attempted to discover just 
that. While it did not highlight 
an explicit move towards 
supercomputers, it did reveal a 
surprise shift away from Unix- 
based workstations in finance 
IT - "we believe that Unix 
systems have been oversold,” 
comments Alison McKenzie, 
research analyst and co-author 
of the [DC report. "They 
haven't lived up to expecta- 
tions, according to survey 
respondents, and they’re more 
difficult to use than IT direc- 
tors expected.” 

In addition, they lack some 
of the functions of proprietary 
systems without being as 
’open’ as desktop PCs in PC 


local area networks (Lans). 
And it is in this area, desktop 
processing power and commu- 
nications, that finance manag- 
ers will increase their invest- 
ment substantially, says IDC. 

In short, finance directors 
seem more interested In local 
computing power. They ask: 
"What can computing help us 
do for our customers?” 

Customer service is "a very 
Important Issue right now,” 
says Ms McKenzie. However, 
she adds, more than a quarter 
are currently investing in 
mainframes and super- 
computers "and 60 per emit of 
those will he Increasing their 
investment.” 

Dr David Nunn at the Uni- 
versity of Southampton points 
to the relative ease-of-use of 
supercomputers In comparison 
with Unix machines. 

"On paper, Unix workstat- 
ions have the same power as 
traditional supercomputers, 
but they’re not as friendly,” he 
observes. "Supercomputers 
have better software and bet- 
ter documentation, on the 
whole. After 20 years of work- 
ing with supercomputers, I’ve 
a ‘soft spot* for the Crays, even 
though high-end Unix boxes 
often have the same number of 
megaflops.” [The term, ’flops' 
stands for floating point 
operations per second). 

But to some finance IT direc- 
tors it will seem heavy handed 
to switch over to super- 
computers from their existing 
systems, which will remain 
Unix-based workstations from 
vendors such as Sun or Silicon 
Graphics in the short-term. 

Tony Jeflree, senior consul- 
tant in the Business Technol- 
ogy division at the National 
Computing Centre, agrees. 

"It depends what your defi- 
nition of a supercomputer Is,” 
he says. These days, desktop 
Unix workstations can handle 
computing of the same scale of 
the supercomputers from a 
few years ago. But I wouldn't 
put supercomputers In the 
same breath as financial ser- 
vices." 

Perhaps where large data- 
base services are involved, 
supercomputing might be use- 
ful, or for applications such as 
gin hai finflitriwi modelling, but 
Mr Jeflree says: "My got feel- 
ing is that supercomputer 
manufacturers will not move 
heavily into financial services 
- perhaps at the esoteric end, 
but not in the mainstream.” 

To some users, top-end Unix- 
based workstations will be all 
they will ever need. 

Steven Sonsino 


Today’s Unix workstations often have the same 
power as supercomputers - but financial users appear 
to be moving away from Unix 



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Speedier software development 


Continued from facing page: 


problems - “users must be 
heavily involved - preferably 
frill time - so that they can 
influence the end-product and 
maim sure that it win do the 
job they want,” he . ■ 

Timeboxing ensures that a 
software development project 
concentrates on the business 
priorities and ensures that at 
least a pat of the system is 
delivered 

a variable in software develop- 
ment. But in Rad you must 
mate the elapsed time a fixed 
quantity and vary the scope 
and resources to make sure 
yon deliver something, says 


Ivement and time- 
te together in Mr 
alive approach to 
l Each part of the 
is built, tested and 
f the user as the 
presses - “if y°« 
tire approach,- you 


are agreeing what you are 
building with the user all the 
time, and parts of the systems 
become available early. Very 
often 50 pex cent of ah applica- 
tion Is not needed from day 
one. So yon can deliver the 
Important parts and let users 
become familiar with them.” 

This approach Is echoed In 
the move towards object-ori- 
ented (O-O) systems which 
emphasise the re-use of pro- 
gram code and component soft- 
ware - a technique which Mr 
Sprott says win help users 
understand their applications 
better. 

"If you use the concept of 
business objects - such as an 
invoice or a sales order - the 
user can see what Is being 
delivered," he says. 

The 0-0 approach also sup- 
ports the phased delivery of 
applications - indeed, it 
changes the whole nature of 
what an application is. Mr 
Sprott sees the definition of an 


application changing - 
“instead of talking about appli- 
cations you can start talking 
about the scope of a system. 
You can use existing infra- 
structures and code to build 
new applications. This obvi- 
ously speeds up development” 

Texas Instruments’ view is 
endorsed by most software 
developers aiming to produce 
software quickly. A recently 
formed industry body has pub- 
lished a 13-point plan for Rad. 
The Dynamic Systems Develop- 
ment Method (DSDM) consor- 
tium, formed in January 1994, 
includes British Airways, 
American Express, Allied 
Domecq and J P Morgan Invest- 
ment Management among its 
corporate members as well as 
leading software developers 
Logics, Data Sciences and Cog- 
nos. 

The 13 principles advocated 
by the consortium expand 
those outlined by Mr Sprott 
They emphasise user involve- 


ment a concentration on busi- 
ness requirements and itera- 
tive development alongside 
practical advice such as contin- 
uous testing, tight deadlines 
and close partnership between 
the developer and the user 
organisations. 

Rad is not seen as a panacea 
to the problems of building 
software quickly but it prom- 
ises to be another evolutionary 
step on the long road to under- 
standing the complex problems 
of translating user-needs into 
working business applications. 

When combined with 0-0 
dpsig n and sound project man- 
agement, it can produce results 
quickly. And because Rad 
places greater emphasis on 
user involvement than earlier 
software development meth- 
ods, it also moves the priority 
away from the technology 
towards the business problem. 

Building software will 
always be difficult - but it is 
likely to be less so as the Rad 
approach gains support. 

The DSDM consortium con be 
contacted on tel 0242 6QS371 


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FINANCIAL TIMES TUESDAY. NOVEMBER 15 


COMPUTERS IN FINANCE 6 


E! 


nfield, in north London, 
can perhaps lay claim to 
i being the oldest junction 
on the financial world's infor- 
mation superhighway. It was 
here, at a branch of Barclays, 
that the world’s first “hole-in- 
the-wall” cash dispenser went 
live, in June 1965. Now there 
are 300,000 of the ubiquitous 
automated teller machines 
(ATMs). 

Gallup Organisation, the 
market researcher, says that 
sis out of 10 adults in the 
industrialised countries of the 
west now carry an ATM card. 
And, according to Tony 
Knight, who researches tele- 
communications and comput- 
ing technology at Henley Man- 
agement College, the ATM is 
developing into a much more 
capable te rminal - “with the 
advent of smart cards, the user 
will be able to transact much 
of their financial business 
through such a terminal," he 
says. 

Paul Rogers, marketing man- 
ager for AT&T self-service 
products, which makes a third 
of the world's ATMs, says 
future sales of the ATM will 
evolve from a low level cash 
dispenser into a multimedia 
kiosk capable of automating 
many service functions - “any 
retailer wanting to sell services 
and products or provide infor- 
mation will use the multimedia 
kiosks, which have opened up 
a whole new delivery chan- 
nel . . . thus, we'll see a big 
growth of multimedia kiosks 
by the end of the century." 

He also predicts that new 
entrants could threaten the 


The humble automated teller is set to grow into an all-purpose multimedia kiosk, says Max Glaskin 

Smart card meets ingenious terminal 


financial institutions’ monop- 
oly of ATMs - “new multi- 
functional terminals could be 
operated by telecom compa- 
nies," he says. “These will 
replace telephone boxes and 
will contain video and com- 
puter devices. They will be 
able to link users by telephone, 
fax, or computer. Services be 
paid for by smart cards. 

"These terminals, linked to 
any bank, will be able to credit 
or debit cards, so that all kinds 
of financial transactions can be 
carried out at one terminal, to 
any bank or nnanriai institu- 
tion,” he says. The question 
is: ‘Will the banks get into 
communications before the 
communications people get 
into banking?'" 

Whoever is first to operate 
the new wave of machines, the 
ultimate winners will be the 
ATM manufacturers. NCR. Dig- 
ital, IBM, DLebold. Fujitsu, 
Nixdorf and Olivetti are gear- 
ing up to des ign machines that 
will allow banks to give better 
service to customers. 

The Huntington National 
Bank in the US has already 
introduced its Personal Touch 
system which has an interac- 
tive video conferencing service. 
It allows ATM-users to see and 
talk with a bank staff member, 
24 hours a day, seven days a 
week. Although a video link 



Customer service centre: cash and cheque deposits plus cheque 
withdrawals and passbook updates are among services offered at banks 
and bidding societies via this new ATM from Siemens Nixdorf 


was demonstrated by the 
American Bankers' Association 
in 1965, until recently the 
equipment has been too expen- 
sive. Cheaper data storage and 
communitarian lines have now 
made it viable - "customers 
are demanding more personal 
banking convenience,” says 
Richard Stage, executive 
vice-president at Huntington. 
“Personal Touch is not the 
final solution for personal 
interactive banking but rather 


a transitional solution on the 
way to home b ankin g ser- 
vices." 

Manufacturers emphasise 
that for ATM systems to suc- 
ceed, they must enhance the 
feeling that a bank cares for its 
customers. Gu nn ar Enroth, in 
charge of market development 
at Digital’s Business Centre for 
Financial Industries in Stock- 
holm. believes that installa- 
tions of multi-functional ATMs 
may not be the way to achieve 


greater customer satisfaction. 

"Most b ank customers use 
ATMs only to withdraw cash," 
says Mr Enroth. "Nobody likes 
waiting in a queue. Even a 
rash withdrawal, particularly 
from a hole-in-the-wall 
machine where the cash has - to 
be transported from inside the 
building to tbe outside, can 
take up to two minutes. If 
other, more lengthy services 
are offered on the same 
machine, the customers 
waiting in line will soon 
become disaffected.” 

He believes that there will be 
growing number of fast 
machines, dedicated to inchvid- 
ual tasks, just as larger 
branches of banks have spe- 
cific counters for different 
transactions. 

Digital has designed termi- 
nals which allow customers to 
make credit applications, using 
touch-screen technology. 
Under law. forms still need to 
be printed out and signed 
before the banks can process 
the applications but. with all 
details captured electronically, 
the acceptance period is 
speeded up. 

Bank customers, however, 
share a natural distrust of new 
technology. This could slow 
down the introduction of new 
self-service banking terminals 
- “the banks must provide real 


incentives to persuade custom- 
ers to use the new terminals,” 
says Mr Enroth. "After all, 
electronic transactions will 
reduce bank costs and the ben- 
efits should be shared there- 
fore with the customer ” 

AT&T has tried to break 
down techno-fear by making 
the user's experience more 
s timulatin g. It is supporting 
the new Galleria 21 shopping 
concept now being piloted at 
Heathrow's passenger termi- 
nals. Travellers can explore the 
‘shopless shop’ at 24 shopping 
kiosks, each of which contains 
a touch-screen offering the 
opportunity to browse through 
catalogues and make pur- 
chases by inserting credit 
cards. 

Half a dozen British book- 
makers are using similar tech- 
nology to accept bets on a vari- 
ety of sporting events. The 
more that terminals are used 
in other spheres of life, the 
easier ft is believed it will be 
for financial institutions to 
automate their outlets. 

But what about security? 
Customers accept ATM cards 
with magnetic stripes and are 
about to experience smart 
cards with embedded chips. 
They are also prepared to 
memorise Pin numbers. But, if 
more facilities are to be offered 
through ATMs, will the estab- 


lished system give adequate 
protection to both the cus^. 
fawner and the financial institu: , 
rian? .. .. /iV ' 

“We have tested the various 
other methods being suggested 
to replace Pin codes but they, 
are not sufficiently accurate,”; 
says Mr Enroth, “Ffice-recognJt: 
rian, palm prints; voice, .recog- 


nition, eye iris matching - so 
far, hone of these; methods; 
-have the higli abcuia^ 'ret» 
which the: banks need so that 
customers are dot wrongly 
refused service.”- 
Thus, the familiar plastic 
86mm x Sinter card will pro-., 
vide access.- an', ever- wider 
range of services. Some observ- 
ers suggest that even general 
elections oduld'ahe day beheld 
via ATMs. Given that most 
people are more.' secretive . 
about their financial Affairs 
thaw. about, their politics; this 
development ibay. alsa be "on 
the cards.”; “ 


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be world's first multHat. 
eral foreign exchange : 
netting . arid settlement 
service- Is: about ±t>. bOce^jga' 
reality and - .in a?eotgit%k ( the 
outsourcing 1 - world /-'.lias 
decided to outsource its entire 
data processing operation from 
scratch. 

The Exchange Clearing 
House, Echo, cooperatively 
funded by more than a dozen 
banks worldwide, as a “green 
field site” is far from a typical 
facilities management (FM) 
deal because the FM partner - 
the Hoskyns Group - will be 
involved in the development of 
the systems as well as the 
maintenance and day- today 
running of it. 

Concern fin: security was a 
crucial factor in the decision to 
take the outsourcing route. 
Uninterrupted, secure, 24-hour 
trading was so important that 
Echo needed at least one 
secure computer site for its 
information technology (ID, an 
expense that few in-house 
operations could bear. 

Another unusual aspect was 
the amount of work put in dur- 
ing the early stages. The five 
bidders on the shortlist for the 
contract had to work out in 
detail how they would develop 
the systems and exactly what 
resources would be needed, 
before Echo was even sure of 
its financial backing. 

In spite of the unusual 
nature of the deal. Echo’s chief 
executive Graham Duncan 
cites the classic reasons for 
choosing an outsourced deal 
rather than “growing in-house 
expertise.” He was looking for 
a fixed-price contract that 
would make IT costs cantroUa- 
ble and he wanted . a • 
ready-made team , well-versed 
in the world of finance, that 
could work well together .from 
day one. He also wanted the 
security of a partner large 
enough to offer backup exper- 
tise and systems, miming par- . 
aHel sites for disaster recovery. 

“This was a unique project 
no-one had tried to do this 
before, ft had to go out to ten- 
der before we could be sure of 
the finance, and for that rea- 
son the venture would only 
work if we found outsourcing 
partners who really understood 
the business,” he says. 

Ranks participating in Echo 
will be able to pool the 
amounts due to each o ther 
from foreign exchange (FX) 
deals. A single payment of the 
net amount due In each cur- 
rency is then made between 
each bank and Echo. 

As well as drastically reduc- 
ing the expense of FX trading, 
and cutting the volume and 
administration of transactions, 
the netting system also 
reduces settlement and 
replacement risks for the par- 
ticipating banks. 

During the five-year gesta- 
tion period, Mr Duncan worked 
out how to extend the low-risk 
ethos to his IT strategy - “we 
look on outsourcing as a risk 
reduction strategy. We had not 
a desk nor a paper chp, and 
what I wanted was a short cut 
to quality and to competence, 
so that all our time and team- 
building could be focused on 
doing the business." 


data sites, and through , the 
sub-contractor Logks, develop- 
ment services far software 
based on IBM AS40Ge and a 
network of Vax computers, - 
Sun workstations and Apple 
Mac servers. The entire ant 
tract is worth £L4m' oyer, five 
years. To reach this figure, 
both sides in the deal bad to be 
sure of exactly what could be 
delivered, what resource? 
would be needed, and exactly 
how delivery could be mea- 
sured. 

Mr Duncan dismisses the 
argument that IT is too pre- 
cious to cede control to 
another source: IT, he says, is 
difficult to control in any case, 
and having a service level 
agreement! offers more control 
than many organisations have 
over their in-house IT. . 

Tve always been a fan of 
outsourcing because the finan- 
cial service industry ought to 
concentrate on being the finate 
itial services industry. For 
many institutions, it’s a drain 
on their resources and a dis- 
tinction from their main busi- 
ness." 

Fixed-price contracts gener- 
ally profit both parties. FM Is 
the direct heir of the bureau 
services used 20 years ago'.in 
assuming that a user is able to 
put a. value (not just a price) 
on IT services. Often, butsourc- 



Graham Duncan: Wa decided on a 
dak-reduction strategy* 


T he value of business to 
be bandied by the system 
(about Sl.OOObn daily) 
dwarfed the run-of-the mill IT 
security problems - “we 
focused at the beginning on 
two concerns: air crashes and 
bombs. Bombs in a financial 
centre offer a short cut for ter- 
rorists, and an air crash can 
wipe out an entire facility." 

Within two years, evidence 
justified this approach, with 
bombs being planted in the 
City of London, and a Jumbo 
jet crashing outside Amster- 
dam, within a half-mile of two 
trading sites. 

Echo only looked at software 
houses that could offer FM 
facilities as well as develop- 
meat skills. Hoskyns, in part- 
nership with one of the UK's 
most experienced financial 
software houses, Logica, was 
chosen as one of only two bids 
re ma i n i ng (and the only Euro- 
pean company) from a shortlist 
of five, which itself had been 
whittled down from an original - 
invitation to tender to 17 
worldwide FM providers. 
Hoskyns is providing two 


mg is associated with old 
mainframe . based “legacy” 
systems, freeing the user to ; 
concentrate on core business. - 

..However, partnerships; 
rather than, mere client /pro- 
vider relationships are. now in 
vogue. Recent trends have 
been to “spUt the profit" 
between client' and provider, 

. where real savings have been 
made. Andersen Consulting . 
was awarded the contract for 
the London Stock Exchange - 
(LSE) computer operations, 
which employed 400 staff cost- 
ing £50m a year in 1991. ... 

The contract (awarded with- 
out tender, due to the prepara- 
tory work) has been running £ 
since early 1992, with the tar- *■ 
get of reducing staff by 24 per 
cent in the first year - “our 
aim was to reduce the total 
run n in g costs by £10m a year, 
in two years, and by £20m per 
a n nu m in five years. ' We’re 
already ahead of target,” says 
Vernon Ellis, the managing 
partner for- Andersen Consult- 
ing in Europe in charge , of tbe 
LSE project 

“We proposed taking, the 
entire operation over, and 
reducing the cost of running 
and maintaining to- free up 
LSE resources to develop- new 
market trading systems. - ” .. 

But not everyone is con- 
vinced. Brian Peri era, manag er 
of information systems fbrPri- 
coa Relocation Managan-w^r^ jg 
talking, to several potential 
partners, all FM suppliers, in a 
project - to ' re- vamp the core 
systems of the company. 

Pricoa is the London Region 
of Prudential Resources. .Man- 
agement of America, which 
manages large- chests such as 
IBM and its parent, the Pru- 
dential insurance Co of Amer- 
ica. in staff relocation schemes. 

“Facilities management just 
isn't an option for the reloca- 
tion division. We feel that by 
outsourcing, you’re putting too 
many valuable resources in the 
hands of people outside our 
own company, if we wanted to 
go back, to take control a g ain, 
it would be a difficult move, 
and that’s a major fear for any 
company to whom systems are 
important,,- In-house - control, 
has to he assured.” 

Claire Gooding 




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constraints will become 
more severe. Page 3 


A travel has always 
been regarded as a 
barometer of overall 
economic activity. One has 
only to visit any airport in 
the statistics 
to be convinced that the rece* 
saon of recent years is on the 
wane. 

The Association of European 
/Mines CAEA). representing^ 
airlines, reports that the boom 

m demand so ter this year coi 
tomes. It expects traffic growth 
for the year as a whole, in 
terms of revenue passenger/kil- 
ometres flown, will be un 
between 8.5 and 9 per cent 
with freight gaining about 13 
per cent in revenue tonne/kilo- 
metres flown, “marking 1994 as 
one of the best growth years of 
the last 15 years". 

BAA, owner of seven UK air- 
ports, including Heathrow 
Gatwick and Stansted in the 
London area, recently reported 
that in the 12 months to end- 
September it handled more 
than 742m passengers at those 
three airports, up 7 per cent on 
the previous 12 months. Heath- 
row alone handled 50.3m, a 
gain of 7.1 per cent 
For cargo, ■ the picture was 
even brighter, with total air 
freight handled at the three 
airports in the year to end- 
September up by 162 per cent 
to 1.14m metric tonnes, with 
Heathrow handling 945.417 
metric tonnes, up 152 per cent. 

This is being repeated 
throughout Europe: almost 
every airport is crowded. 
not just at peak periods. AGI 
Europe (the European regional 
section of the global Airports 
Council International), repre- 
senting 261 airports in 43 coun- 
tries throughout the region, 
reports passenger traffic up 72 
per cent in the first half of 1994 
at 2782m with cargo up 1L7 
per cent at 422m metric 
tonnes. Aircraft movements 
were up 2.4 per cent at more 
than 5m. Many airlines report 
strong business. The pattern of 
travel, too, appears to be well- 
spread, with a strong element 
of business travellers mixed in 
with leisure passengers. 

Not only are European air- 
ports becoming busier, but 
most of them are also undergo- 
ing modernisation and expan- 
sion. It has been estimated - 
by the International Civil Avia- 


FINANCIAL TIMES SURVEY 


EUROPEAN AIRPORTS 


Further traffic growth 
will be seen in 
southern England. Page 4 


Tuesday November 15 1994 





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Heathrow: UK traffic growth to being repeated in Europe a** yA*mau> Thechanging nature of airports: tho Gotf Centre at ScWphoJ, Amsterdam Congestion to being eased by Improved air traffic control aiwk 

The figures paint a bright picture 


tion Organisation (ICAO) - 
that the cost of worldwide avi- 
ation infrastructure modemisa- 
tion could run as high as 
$350btf from 1991 to 2010, with 
airport development alone 
accounting for J250hn of that, 
the rest being largely for air 
traffic control facilities. 

The figure, however, covers 
basic development costs, such 
as ter minals^ runways, aprons 
and the necessary equipment 
for operations. It does not 
cover the cost of associated 
infrastructure developments, 
such as external road and rail 
link s and other facilities, 
which are often separately 
funded developments. If these 
outlays are included, the over- 
all cost of world airport devel- 
opment could be much higher 
perhaps about $400hn. 

The precise share of that 
required by Europe's airports 
is difficult to guage, for many 
development plans are stfll in 
process of formulation. But 
A Cl Europe estimates that 
between 1993 and 1997 alone. 


With an anticipated doubling in passenger traffic and increased cargo 
activity in the next five to 10 years, most European airports are 
undertaking modernisation and expansion, says Michael. Donne 


its members throughout the 
region will be spending $22bn 
on modernisation and expan- 
sion programmes. 

These airports have com- 
bined annual revenues of 
about JlSbn, employ more than 
lm people and handle more 
than 520m passengers a year 
(both domestic and interna- 
tional), together with 8m 
tonnes of freight and 10m air- 
craft movements. These figures 
will rise as traffic grows. 

The Air Transport Action 
Group (a global coalition of 
aviation organisations) fore- 
casts that European air traffic 
of more than 500m passengers 
in 1994-95 will rise to about 
650m by 2000, and thereafter to 
820m by 2005, and more than 
lbn by 2010. In a Anther study 
an the economic benefits of air 
transport, ATAG points Out 


that for every lm passengers 
passing through an airport, 
between 2,500 and 8,000 jobs 
are created both directly and 
indirectly, with an annual eco- 
nomic impact of between 
S13Qm and $L6bn. 

ATAG adds that airports also 
act as magnets for a wide 
range of industrial and com- 
mercial enterprises, often fol- 
lowed by the development of 
other urban infrastructures 
such as housing, schools, 
shops, road and rail transport 
This creates further employ- 
ment and economic growth 
BAA says that Heathrow alone 
generates 70,000 jobs, and that 
another 6,000 will be generated 
if its proposed £900m Terminal 
5 goes ahead. 

But the growing volume of 
traffic at Europe's airports has 
generated its own problems, 


operationally through conges- 
tion on the ground and in the 
air, and environmentally 
through the effects of noise 
and pollution on surrounding 
communities. 

Air congestion is being eased 
steadily by the sheer weight of 
increased terminal, runway 
and air traffic control infra- 
structures. In many places, 
road and rail access are also 
being improved, but at slower 
rates, so ground traffic conges- 
tion is often a serious problem, 
especially at peak hours. 

Earlier fears of strangulation 
of the air transport system 
because of infrastructure con- 
straints are now lessened. 
ATAG points out that the esti- 
mated cost of congestion to the 
European economy will be 
about $6bn annually by the 
year 2000 against SlObn esti- 


mated earlier, with traffic lost 
due to congestion down to 27m 
passengers a year against an 
earlier estimate of 50m. 

But the problems are still 
there: ATAG says airport and 
ATC capacity improvements 
have barely kept up with 
increased demand. Continued 
spending on infrastructure will 
be necessary to keep pace with 
further traffic growth. 

T here is also a growing 
feeling that governments 
and the EU tend to focus 
more on road and ran than on 
air transport, and that in the 
latter the emphasis is more on 
airlines than on airports. 

The AEA argues that the 
emphasis in the EU*s plans for 
Trans European Networks ls 
heavily biased towards road 
and rail. In the 34 transport 


projects which may qualify for 
EU financial support under 
this policy "only three air 
transport projects - airport 
development at Milan, Berlin 
and Athens - are included”, 
says the AEA , adding that 
most are national projects. 
“None would have the pan-Eu- 
ropean dimension that the air 
traffic control project often ” it 
says, a reference to the AEA's 
campaign for a unified “Single 
Sky For Europe” in terms of 
air traffic control. 

ACI Europe, in turn, believes 
that in the air transport sector, 
the emphasis is biased in 
favour of airlines, with airports 
being largely neglected. In pap 
ticular, there is a tendency to 
ignore the smaller regional air- 
ports when governments nego- 
tiate international air services 
agreements. 

As Philippe Hamn n, director- 
general of Ad Europe, points 
out. In such matters national 
flag carriers are consulted, but 
neither the airports nor the 
regions they serve receive the 


same attention. 

Environmental issues are 
inextricably entwined with 
infrastructure development. 
No one likes an airport in his 
backyard, or even nearby, and 
the problem of finding where 
to put future additional run- 
ways and terminals will be 
compounded by the need to 
meet increasingly formidable 
environmental constraints. 

This is already difficult in 
the over-crowded London and 
south-east England region, and 
the solution may well require 
innovative thinking - perhaps 
even a return to the concept of 
an offshore airport in the 
Thames Estuary. 

Elsewhere on continental 
Europe, Paris Charles de 
Gaulle has more space avilable 
for new developments than 
most others, but there may 
well be problems elsewhere. 
Plans for a fifth runway at 
Amster dam ’s Schiphol have 
already led to a site being 
selected further away from the 
city than the present airport 

In the meantime, as a result 
of the massive rise in traffic 
over recent years and the 
potential further growth, air- 
ports as individual entities are 
substantially changing their 
character. 

The daily presence of thou- 
sands of people with time and 
money on their hands has seen 
the evolution of airports as 
important retail centres. BAA 
is actively exploiting this. 

As Mr Hamon has said: “In 
the past 50 years airports have 
undergone major transforma- 
tions. “They have developed 
from aerodrome to airport. 
From public utility to commer- 
cial entity. From administra- 
tion of a simple function to 
management of a complex 
enterprise. From providers of 
services to airlines to enter- 
prises marketing to passen- 
gers. From primary facility to 
intennodal transportation cen- 
tre, indeed a platform for many 
commercial activities and a 
partner in economic develop- 
ment." 

He adds that today, as an 
essential port of the national 
and regional economy, this 
new role of airports "must he 
acknowledged by regulators at 
both national and European 
level." 



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EUROPEAN AIRPORTS 2 


Michael Donne on the fierce competition to become top European hub Regional airports are chasing small airlines, says Michael De mpsey 

Heathrow is challenged Cause for local celebraticiiri£| 


Tiie rapidly emerging role of 
airports as catalysts for eco- 
nomic growth is intensifying 
competition for market share 
among the hub airports of 
Europe. 

BAA is pressing for the 
development of the £900m Ter- 
minal S at Heathrow, London, 
to cope with relentlessly rising 
traffic and, just as signifi- 
cantly, to secure its position as 
the foremost hub airport in 
Europe. The development 
would lift capacity by 30m pas- 
sengers a year to about 30m by 
2013. 

A hub airport Is one where 
many passengers change air- 
craft fend sometimes airlines) 
for onward flights - to ‘Inter- 
line" in airline lang uage - 
because the airport is served 
by a lot of carriers. 

At Heathrow, more than 90 
airlines from 85 countries offer 
direct flights to more than 200 
destinations. These figures are 
bound to rise in conjunction 
with air passenger and cargo 
traffic, putting further pres- 
sures an slots - precious take- 
off and landing timpfi 

The slots problem at airports 
revolves around several fac- 
tors: runway, ter minal and air 

traffic control capacity and 

even the possibility of bigger 
aircraft. 

Improvements in ATC capac- 
ity by the UK National Air 
Traffic Services (Nats) and 
Eurocontrol, and the prospect 
of Terminal 5 support BAA'S 
claim that it will not need a 
third runway at Heathrow. 

The most imm ediate chal- 
lenge to Heathrow is from the 
nearest continental European 
cities where several other hubs 


are expanding rapidly. 

ACI Europe statistics for 
1993 show that Heathrow was 
the busiest European airport 
with nearly 48m passengers, of 
whom about 30 per cent were 
inter-fining. It was Mowed by 
Frankfurt with 32.5m, Paris - 
Charles de Gaulle (CDG) - at 
26.1m, Paris Orly at 25.4m, 
Amsterdam at 2L3m and Lon- 
don (Gatwick) at 20.2m. 

At Frankfurt a new $3£6bn 
terminal opened in October, 
raising the airport’s capacity 
by 10m- 12m passengers a year. 
In fiie past nine months the 


These are the main develop- 
ments at Heathrow's direct 
competitors but virtually every 
other airport in Europe is 
undergoing modernisation to 
meet the anticipated doubling 
of traffic by the early years of 
the next century. 

At Heathrow, the £70m 
Flight Connection Centre in 
the Central Terminal Area, 
designed for inter-lining pas- 
sengers, opens next month. 
The £300zn London (Padding- 
ton) to Heathrow rail link is 
due to open in 1997. 

Although still regarded by 


Virtually every airport in Europe is 
undergoing modernisation to meet 
anticipated traffic growth 


airport handled 26.5m passen- 
gers, and is on target for 34m 
for the year. 

The airport is linked to the 
German rail network and 
expansion plans inr-inde a sec- 
ond station for advanced 
high-speed trains. 

The Paris Airports’ Author- 
ity, which owns CDG, Orly and 
Le Bo urge t, plans a third run- 
way at CDG and a third termi- 
nal Another terminal opened 
at Orly last year, raising capac- 
ity by 10m passengers a year. 

Schiphol Amsterdam, is a 
European hub already attract- 
ing many UK travellers who 
find it a more convenient inter- 
line airport than Heathrow. Its 
expansion programme will pro- 
vide for 34m passengers a year 
by 2000 and 40m (phis 5m rail 
passengers) by 2015. A fifth 
runway is planned. 


some as a “holiday” airport, 
Gatwick is a scheduled ser- 
vices hub serving more than 
100 destinations. 

Elsewhere in the UK, Man- 
chester is planning a second 
runway, while a planning 
inquiry has begun into the 
development of Filton, near 
Bristol, as a substantial 
regional airport for the 
south-west of England. 

The $22bn that ACI Europe 
estimates its 261 member air- 
ports in 43 countries will be 
spending between 1993 and 
1997 on Utilities, is likely to go 
mostly on te rminals and run- 
ways within existing airport 
boundaries. 

'Hie number of airports 
planned on greenfield sites is 
small - at Athens-Spata and 
Berlin-Brandenburg, for exam- 
ple - largely because of lack of 


space and environmental con- 
straints of governments. 

Progress since 1990 in 
improving and ex panding air- 
ports and harmo nising air traf- 
fic control facilities appears to 
have reduced traffic delays, 
leading to a downward revision 
in the forecast cost penalties of 
congestion from $10bn to $6bn 
a year by 2000. 

But delays are still “unac- 
ceptably high", according to 
John Meredith, the Air Trans- 
port Action Group's executive 
director, who adds that “gov- 
ernments must continue to 
make major investments in the 
aviation infrastructure if 
Europe is going to realise the 
economic benefits its air trans- 
port industry can bring". 

There remains the question 
of how Ear the development of 
advanced high-speed rail trans- 
port throughout Europe, and 
especially the Channel Tunnel 
will affect short-haul air trans- 
port and the hub airports. 

There is concern in the air 
transport industry that the 
emphasis being placed by the 
EU on developing “inter-modal- 
ity" between airports and 
high-speed rail services could 
divert attention from the need 
for direct investment in air- 
ports and ATC facilities. 

The tunnel seems certain to 
divert a significant volume of 
traffic from the airlines, espe- 
cially if fares re main competi- 
tive. Whether any of those pas- 
sengers will be inter-lining 
between rail and air is uncer- 
tain. The Paddington - Heath- 
row rail link will help ease UK 
transfers, but a Channel Tun- 
nel link built into Heathrow 
would be beneficial. 


Norwich Is celebrating 800 
years as a city and capital of 
the English region of East 
Anglia. Another canse for 
local celebration is the sudden 
success of Norwich airport 
With a newly completed £lm 
extension to its terminal build- 
ing, Norwich now handles 

230.000 passengers a year and 
epitomises the rise of the 
regional airport 

“We survive on feeding 
other airports through the hub 
and spoke system says Nor- 
wich Airport marketing man- 
ager Peter Buckell. Amster- 
dam's Schiphol is the Ufehlood 
of Norwich. So far this year 

63.000 passengers from the 
wealthy but remote region of 
East Anglia have flown out of 
Norwich on one of four daily 
flights to SchJphoL 

Consolidated feres, the prac- 
tice of selling one ticket inclu- 
sive of the regional air fare to 
the larger hub and then on to 
the ultimate destination, have 
made Norwich an attractive 
prospect for Transatlantic pas- 
sengers. The hop across the 
North Sea to Schiphol takes 
less than an boor, and the 
Dutch hub is renowned for the 
facilities it affords transit pas- 
sengers. 

A new pier has opened 
recently dedicated to regional 
services. Mr BuckeC is mildly 
surprised at the effect of this 
connection “We have been fly- 
ing to Amsterdam for 25 years 
now, and this year has 
exceeded all expectations.'* 
Norwich Airport is a comfort- 
able option for passengers. 
With just three gates it offers 
a contrast to the mayhem of 
Heathrow or Gatwick, and 


that lack of congestion is mir- 
rored in the air. Landing slots 
are available and capacity 
problems are unheard of. 

This ease of access for air- 
lines has combined with 
increasing journey times to 
major airports to boost 
regional airports and the car- 
riers that specialise in servic- 
ing *hpTTl 

This growth has been a boon 
to the 56 members of the Euro- 
pean Regional Airlines Associ- 
ation (ERAA). A spokesman 

rlaimc Hint RBAA airiinen find 

themselves pursued by adven- 


Agreement played a Mg part 
in creating this market- Air 
UK Is one of ERAA’s larger, 
members with 1,400 em pl oyees 
■and a fleet that Includes BAe 
14B Four-engined jets. The 
advent of jet aircraft such as 
the 146 and Fofcker IOO have 
expanded the options, lor' 
regional services. With about 
100 seats and an airframe 
designed for economical 
operations over short dis- 
tances these aircraft make the 
most of new European routes. 

Phil Chapman, director of 
planning at Air UK says- the 


Airports are now being innovative 
in offering marketing support 
to the airline service 


turous airports. “It is quite 
common nowadays to see an 
airport go out, find an atniwg 
and propose that the carrier 
takes up slots on a new route,” 
the spokesman said. 

“The airport itself will have 
done the market research to 
justify that route. 1 Airports are 
now being innovative in offer- 
ing marketing support to the 
airline service." 

This is a new tads for air- 
port authorities. Traditionally 
they waited for the carriers to 
Hoyt a path to their door awfl 
plead for Landing slots. But 
across Europe regional air- 
ports are chasing the new 
small airlines to marry their 
capacity with passenger 
demand for local convenient 
terminals. 

Lib er alisat ion under an EU 
Inter-regional Air Services 


146 was the deciding factor in 
Air UK’s adopting a service 
from the UK to Florence. Pre- 
viously passengers for Tus- 
cany flew to Pisa. Mr Chap- 
man says Air UK can now tap 
into lucrative upmarket' holi- 
day traffic by offering a flight 
direct to a popular destination. 

This kind of association ben- 
efits both , parties. The ERAA 
cites the development of Dort- 
mund airport as a result of 
close co-operation between (he 
airport authority and the Nur- 
emberg-based carrier Eurow- 
ings. Mr Chapman notes that 
most of the 36m passengers 
carried by ERAA members in 
1993 are ultimately bound for 
a centra of population. But the 
ease of access factor will per- 
suade them to land away from 
their prime destination. 

Dussehtorf is cited as a suc- 


cessful regional airport, . but 
DusseWorf Airport Mi. is now 
promoting Monchengiadhajeh, 
15km away, as un attractive 
destination. The . company 
highlig hts “unlimited slots, 
favourable user charges” as 
Incentives to canter* while 
passengers can .enjoy err and 
bus shuttles to Dussehtorf 
itself. ' 

Eastern Europe is latching 
onto tfaebubs and spohestitB- 
ory. Under Soviet domination 
Hungarian interrial aviation 
relied on a network of 20 grass 
ai r stri ps to supplement Buda- 
pest’s main terminals Now 
the dvfl aviation aut h or ity "fa. 
taking control of fanner War- 
saw Pact military, airbases. 
Hungary is acquiring a 
ready-made regional airports 

infrastructure that should 
help attract- foreign; invest- 
ment tfaatwfllsee Its Iocalcar- 
riers moving out of their tradi- 
tional domain of Cargo 
carrying and ; crap-spraying 
into more praAtafite -sectans. 

The cantos that make up 
ERAA are csnreiitly enjoying 
an average annual passenger 
growth rate of 14 per emit 
That is double the figure fin- 
large carriers flying tradi- 
tional routes into leading 
hubs. Regional airports have 
learnt to work in tandem with 
these carriers UEe 

easier for the hard-pressed 
passenger as well as boosting 
the bottom line. 

This Is a perilous indu stry , 
with apparently successful 
operators such, as Air UK 
nudging the balance sheet into 
profit. Regional airports sim- 
ply cannot affo rd to ignore the 
customer. 


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London 


Madrid 


Milan 


Facilities cater to every type of traveller 


Loudon’s five international 
airports represent the entire 
spectrum of the genre, from 
the overcrowded to the virtu- 
ally deserted, serving everyone 
from the besuited businesses 
traveller to the sombrero tot- 
ing package holidaymaker. 

The number one, Heathrow, 
remains easily the busiest 
international airport in the 
world. A million passengers a 
week pass through its four ter- 
minals. It operator BAA admits 
that it is dose to reaching a 
level that is uncomfortable for 
its users. 

The solution - a fifth termi- 
nal - will not be opened until 
2002, and that is assuming per- 


mission is granted for a go 
ahead next year. 

But airlines continue to flock 
to Heathrow, with the likes of 
American Airlines and Cathay 
Pacific deserting other London 
airports in recent months in 
search of the lucrative busi- 
ness traveller. 

Inside the airport, facilities 
for business travellers con- 
tinue to improve. The latest 
addition is a night connections 
centre. 

London's second airport, 
Gatwick, still labours under an 
image of being a char ter fli g ht 
base, even though it is often 
much quicker to reach than 
Heathrow for central London- 


based travellers. 

It has just opened a business 
pavilion for first and business 
class travellers, and a transit 
lounge that riaiim to allow fho 
quickest connections in Europe 
of about 30 minutes. 

BAA marketed London’s 
third airport, Stansted, as a 
business airport from the start 
But with just 3m passengers a 
year and a capacity of 15m, it 
has a long way to go before it 
reaches the critical mass 
which is needed to attract the 
frequency of flights to capital 
cities that business travellers 
demand. 

Number four, London City 
Airport, is this year finally 


able to say that it is a success 
story. Passenger levels are 75 
per cent above their levels last 
year and it now served 10 desti- 
nations with its small aircraft 
operated by six airlines includ- 
ing Air France, Virgin and 
Dutch carrier VLM. 

Finally there is Luton Air- 
port, which admits it will 
remain a holiday airport for 
many years to come. It is try- 
ing to boost its business traffic 
and to that end is concentrat- 
ing on es tablishing a direct rail 
link to the City of London, the 
Thameslink, which also con- 
nects to Gatwick. 

Daniel Green 



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Barajas plans an 
‘airport city’ 


Barajas airport, which 
accounts for 20 per cent of 
Spain's air traffic, is scheduled 
to grow fast over the next 
decade as it becomes the focal 
point for economic activity in 
the area between Madrid and 
the satellite towns of Torrejdn 
de Ardoz and San Fernando de 
Henares. both of which have 
become important light engi- 
neering centres. 

Access to the airport, which 
is 15km from the city centre, 
has been considerably eased by 
the completion of Madrid's sec- 
ond ring road and of two new 
direct approaches to the main 
terminals. A third ring road is 
planned as well a rail link. 

The expansion comes at a 
timp when the airport remains 
below saturation point and it 
will avert any over-capacity in 
the future. 

Barajas handled a record 
18.4m passengers in 1992, is 
forecast to be used by some 
18m this year. The airport will 
have a capacity for 27m by the 
year 2,000. 

Over the past two years 
more rational use of the air- 
port’s two intersecting run- 
ways has raised the maiimnin 
number of flight operations 


Germany is serious about 
becoming a major European 
air hub, and its two main air- 
port projects of the past few 
years only serve to emphasise 
this. 

The most recent is the open- 
ing last month of a second ter- 
minal at Frankfurt airport in 
an attempt to siphon away 
international traffic from Lon- 
don's Heathrow. 

At the same time the new 
Munich airport, opened in May 
1992, is already handling 12.7m 
passengers a year and expects 
to increase that to 13.4m this 
year and eventually up to the 
terminal’s capacity of 18m. 

With 58 services a week to 
North America. Munich is Ger- 
many's second-largest hub for 
overseas flights. 

Both aim to be passenger- 
friendly, and Munich is proba- 
bly every passenger's dream. 
With just one terminal with- 
out the “satellites” and “fin- 
gers" found at London’s Gat- 
wick and Paris Charles de 
Gaulle, it aims to make it easy 
to get around. 

Frankfurt’s second terminal 


Attention switches 
to Malpensa 


from 33 to 55 per hour, the 
number of aircraft hays has 
been raised from 75 to 100 and 
additional space has been 
gained for the passengers by 
Unking up the main domestic 
an d international terminals. 

Such improvements allow 
the airport to absorb without 
iindna str ain a forecast annual 

Improvements allow the 
airport to absorb a 
forecast annual increase 
of some 4 per cent in its 
number of passengers 

increase of some 4 per cent in 
its number of passengers as it 
awaits the construction of a 
new runway and a new termi- 
nal that will come into service 
after 2000. 

The planned new facilities 
represent a quantum leap for 
Barajas and they form part of 
an ambitious plan to develop 
an “airport city” that will 
incorporate large recreational 
areas, new office and service 
sector zones, and a greenfield 
industrial estate. 

Tom Bums 


Expansion at Linate, Milan’s 
principal airport, is hampered 
by its dependence on a single 
runway. Last year, the airport 
recorded a 2 per cent increase 
in aircraft movements to 
114,157, and the number of pas- 
sengers handled increased by 
L3 per cent to 9.5m. 

Passenger capacity is more 
than adequate, following the 
improvements to the airport 
terminal in the late 1980s. But 
rather than hiCTaasing tim size 
of aircraft serving Linate, air- 
lines prefer to increase fre- 
quency, and the airport - a 
mere 20-minute taxi ride from 
the centre of the city - cannot 
add a further runway because 
it is, as its spokesman puts it, 
“hemmed in by concrete”. 

Attention has therefore 
switched to the city’s second 
airport, Malpensa, which like 
Linate belongs to SEA, a profit- 
able private company con- 
trolled by the Milan city 
authorities. 

Malpensa, 45km from the 
city, currently handles only 
about 3.6m passengers a year, 
on charter and intercontinen- 
tal ni ghta. 

A programme of improve- 
ments, Malpensa 2000, includ- 


M Frankfurt and Munich 

Projects underline a 
serious ambition 


built at a cost of DM1.6bn 
($1.07bn), is the airport’s 
answer to overcrowding. The 
airport, which serves 105 
scheduled airlines, is second 
only to London’s Heathrow 


passengers. Its new terminal is 
linked to the original facility 
with a driverless overhead 
shuttle, and meanwhile 
upgrading Of Te rminal I is 
under way, where Lufthansa, 


But in spite of the huge projects at 
Frankfurt and Munich airports, both 
have an eye on the future 


and is the busiest passenger 
airport in continental Europe, 
and last year handled 32.5m 
passengers - almost three 
times its capacity when it 
opened in 1972. J 

The new terminal expects to 
handle 5m passengers this 
year, and will be able to cope 
with between 10m and iam 


the national carrier, will 
occupy the western half of the 
building. 

But in spite of the huge pro- 
jects at both airports, both 
have an eye on the future. At 
Munich, the next large project 
will be the Munich Airport 
Centre, which will include far- 
ther airline offices, a confer- 


Zurich and Geneva 


mg a new fast rail-link -with 
the city centre, is under way 
and Should be sufficiently 
advanced to allow some flights 
to t ransfer to from linate to 
Malpensa in 1998. 

A political decision will have 
to be made on whether to take 
the logical next step and move 
all international flights to Mal- 

- Linate is tailored to 
business users who 
account for an estimated 
TO or 80 per oent of afl 
passengers 

pensa, keeping only the busy 
domestic operations at T.tnnte 
This year traffic at both 
Milanese airports is increasing. 
In the tone months to the end 
to September, the number of 
passengers using Linate was 
up 9.1 per cent against the 
same period last year, and at 
Malpensa, up a2 per cent 
Linate, which handles only 
scheduled flights, is tailored to 
business users, who account 
for an estimated 70 or 80 per 
cent to all passengers. 

Andrew Hill 


ence centre and restaurants, 
and more shops and lounges. 

Meanwhile Frankfurt plans 
to link its two terminals with a 
third section to create what it 
calls a “mega complex", and a 
second railway station for the/ 
airport is due to go into service "" * 
before the turn to the century. 

Also on Frankfurt’s agenda 
is r e ad i n e ss for the navt gener- 
ation of aircraft - the "super- 
jumbos” which will carry up to 
800 p a ssen g ers. During the con- 
struction. of the terminal, the 
aircraft manufacturers were 
consulted about the likely 
dimensions of such aircraft, 
and as a result the eight termi- 
nal gate stands can all accom- 
modate aircraft with a wing- 
span greater than today’s 747s. 

However, it does not expect 
to have to expand its runway 
capacity until well after the 
turn to the century. By “fine- 
tuning” its existing runway 
capacity the airport says it 
expects to be able to cope with 
additional aircraft movements 
up to 2010. 

Kate Bevan 


Congestion is expected to worsen 


Zurich and Geneva airports are 
both enjoying moderate growth 
in both business and leisure 
traffic and are suffering from 
capacity constraints. 

In both cases, the problems 
are entirely related to passen- 
ger handling. Zurich-Kloten’s 
three runways are more than 
adequate to meet foreseeable 
demand as is Geneva-Coin- 
trin’s single runway. 

Zurich’s two terminals tend 
to reach their limit to handle 


passengers in early summer 
when both business and leisure 
traffic is high. Cointrin Is 
already handling 6m passen- 
gers a year, which is about 16 
pm- cent more than the termi- 
nal was designed bo accommo- 
date. With passenger growth of 
48 per cent in the first eight 
months of this year, things will 
get worse before they get bet- 
ter. 

However, construction is 
under way on a SFrl20m 


(S96.7m) terminal extension 
that will raise capacity at Cotn- 
trin to 8m passengers a year 
when it is completed in 1996. 
Other more moderate improve- 
ments in people moving are 
also In the works. 

At Kloten, the outlook is 
more cloudy. The airport is a 
hyper-sensitive issue in envi- 
ronment-conscious Zurich. A 
proposal for a new SFrSbn ter- 
minal building must be submit- 
ted to the people of the canton 


in a referendum next summer. 
If the proposal is approved, 
construction could begin in 
1998 with the hope that the ter- 
minal would open in 2003. 

In the meantime, congestion 
in the existing terminals win 
worsen. In the first nine 
months of this year, passenger, 
numbers were up 7 per cent, 
and the upward trend Is expec- 
ted to continue. 

Ian Rodger 










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FINANCIAL TIMES 



III 


EUROPEAN AIRPORTS 3 


Pol- 

^ortTarp m °st 

mentaUy-conscioiiQ Xt ? me y GQviron - 

to^pop 

av^T or r uchtte ^“ 

SSh'Jh tight curfews with severe 
restrictions 0 n j e t aircraft move- 
the obligatory use of 
m8iit “to and out of 
fiES - t0 minimise in 

f? 5 - ^e-off “d landing 
2Sf rt abat J me V r Procedures, and 
StaiCt operational procedures to min- 
^senoise created by aircraft on the 

The likelihood is that such environ- 
mental constraints will become even 
“£?“ ve re- The Airports Council 
international, representing the own- 
ers and operators of almost 1,000 air- 
ports worldwide, believes that as envi- 
ronmental regulations become 
increasingly important, the air trans- 
port industry, because of its visibility 
ana its continuing image as an elite 


Michael Donne finds the industry is environmentally conscious 

Keeping a good record 


mode of transport, “runs the risk of 
being singled out for special treat- 
ment in this respect". ACI believes 
airport owners must be ready for this. 

But much progress has been made. 
Over the past 30 years, the noise of Jet 
engines has been progressively 
reduced through technology 
advances, while legislation requiring 
the phasing out of older, noisier and 
dirtier aircraft in favour of cleaner 
and quieter modern types has, 
together with improved operational 
practices, transformed aircraft fleets. 

The result is that airports today are 
much quieter places than they were, 
in spite of considerable increases in 
air traffic. This process is continuing. 
A meeting in December 1996 of the 
International Civil Aviation Organisa- 
tion - which is responsible for estab- 
lishing environmental standards for 
the world air transport industry 
through its Committee on Aviation. 
Environmental Protection fCAEPJ - 
is expected to recommend further 
tough standards on aircraft noise and 


engine emissions, especially in the 
light of anticipated big increases in 
air traffic. 

The ACT and the International Air 
Transport Association (lata, repre- 
senting over 220 airlines), are working 
through an Environmental Coordina- 
tion Group to develop “joint posi- 
tions" Tor that meeting. They are anx- 
ious to ensure that any measures 
benefit the environment without 
involving unnecessary costs to air- 
ports and airlines. 

O ne passible measure is a fur- 
ther tightening of the rules on 
the acceptability of aircraft in 
terms of noise and pollutant emis- 
sions. Many airlines believe this could 
mean even earlier disposal than is 
necessary of aircraft with many years 
Of profitable service remaining. 

Substantial research is being con- 
ducted by the aviation industry, 
including airlines, airports and air- 
craft and engine manufacturers, to 
determine just what environmental 


protection measures can be Intro- 
duced without potting brakes on the 
smooth growth of world air transport 
But the environmental record of 
most airports in Europe is generally 
good. BAA in the UK, for example, 
has introduced extensive landscaping 
round its airports and erected sound 
barriers to help shield local communi- 
ties from ground level noise. It has 
also helped house owners to reduce 
noise nuisance by providing sound 
insulation grants. 

BAA also publishes a detailed 
annual environment report, setting 
out its activities, its targets and 
achievements. British Airways, the 
biggest user of UK airports, does the 
same. 

Throughout Europe, it is now 
impossible for any airport to under- 
take a major expansion programme 
without first having to satisfy local 
authorities, as well as regional and 
central governments, of its environ- 
mental acceptability. 

Winning acceptance tor new devel- 


opments can take a Tong time. In the 
UK, it can take as much as 10 years 
from conception to in-service opera- 
tion for either a new ter minal or run- 
way. 

In some places it can take longer. It 
took about 30 years to get Munich's 
new airport up and running, although 
part of those delays were due to finan- 
cial problems. 

BAA has a well-established track 
record In assessing the environmental 
impact of ventures such as new termi- 
nals. Before submitting proposals for 
such developments, it prepares com- 
prehensive environmental assess- 
ments of the project. 

In the case of the proposed Termi- 
nal 5 at Heathrow, an environmental 
statement was submitted with the 
application for planning permission in 
February, 1993. BAA has also made 
meticulous preparations for the forth- 
coming public planning inquiry into 
Terminal 5, which starts on May 16 
next year and could take more than a 
year to complete. 

Such inquiries are the best means 
of ensuring that everyone involved, 
from the airport managements 
through to local residents and work- 
ers, can have a voice in what is 
planned No-one has yet devised a bet- 
ter way of ensuring that environmen- 
tal - and social - justice is done. 


A big improvement in the overall 
pattern of delays to air traffic 
throughout western Europe has 
been seen over the past few years. 
However, much remains to be done to 
ensure that the region can cope with 
the anticipated doubling of passenger 
traffic in the next five to 10 years. 

Forecasts that the cost to the Euro- 
pean economy of air traffic delays 
would rise to $10bn anually by the 
end of the decade if nothing was 
done, have been revised downwards 
to $6bn. But at that level, continued 
government attention is still needed 
throughout Europe, especially in air 
traffic control, with the work that 
has been done barely keeping up with 
increased demand. 

In the UK alone, the National Air 
Traffic Services (Nats), operating 
under the aegis of the Civil Aviation 
Authority, handles l.Sm aircraft 
movements in controlled airspace 
annually, involving more than loom 
passengers. In addition, the ATC sys- 
tem has to cater for much traffic 
overflying the UK, mainly between 
continental Europe and North Amer- 
ica. 

UK airports have experienced a 
sharp drop in the number of delayed 
departures, despite an increase in air- 
craft movements, with delays at Lon- 
don airports down from 28 minutes 
on average to eight minutes over the 
past three years. This is largely due 
to the increase in ATC capacity 
resulting from the introduction of the 
Centra] Control Function (CCF) at 
West Drayton, near Heathrow, which 


Western Europe is gradually sorting out its air traffic control 

Clear skies - at a cost 


helps to increase the volume of traffic 
handled. 

To ensure its operations not only 
keep pace with traffic growth but 
also move ahead of it NATS is invest- 
ing In new facilities at the rate of 
£150m a year, compared with £20m a 
decade ago. 

Privatisation of Nats, now under 
consideration, will be likely to make 
it much easier for Nats to gain access 
to private capital markets to help 
finance its expansion programme. 
Important elements in Nats' current 
development programme include: 

• Hie new £350m en route air traffic 
control centre, under construction at 
Swanwick, Hampshire, which enters 
operational service in late 1996, 
enabling ATC capacity to be expan- 
ded in line with traffic growth; 

• Completion of the CCF project, to 
provide capacity in line with growing 
demand in the London terminal area, 
by end-1995; 

• The Scottish radar replacement 
programme, mninding a new radar 
installation north of Aberdeen for 
helicopter operations in the northern 
North Sea. and the reequipping of 
avis ttn g sites, one near Aberdeen and 
one at Lowfher Hill, by late 1995 and 
1996 respectively; and 


• A proposed new Scottish and Oce- 
anic air traffic control centre, adja- 
cent to the existing one at Prestwick, 
for completion by about 2000. 

Much is also being done to upgrade 
existing infrastructures to increase 
efficiency, cut costs and meet interna- 
tional commitments, especially to 
Eurocontrol, the pan-European body 
based in Maastricht which is master- 
minding the region-wide improve- 
ment of ATC called Eatchip - the 
European ATC Harmonisation and 
Integration Programme. 

N ats’ own infrastructure 
improvements include: 

• A new ground-to-ground 
communications system comprising a 
core network of digital links to meet 
both CAA and Nats requirements; 

• UK-wlde replacement of radio-sta- 
tion control and monitoring equip- 
ment which is becoming increasingly 
expensive to maintain; and 
• A new radar data transmission 
network to cope with increasing air 
traffic volumes and to cater for the 
needs of the new en route centre. 

On the wider European scene, 
Eurocontrol's Eatchip programme 
was created by the European Civil 
Aviation Conference (ECAC, repre- 


senting the governments of more 
than 30 countries) in 1990. 

Eatchip Is aimed at creating a 
seamless Europe-wide ATC system to 
replace the present motley collection 
of individual national systems, so 
that as far as possible all European 
air traffic can flow smoothly. 

The core of the problem is that 
overall air traffic in Europe is han- 
dled by more than 50 control centres, 
using more than 30 different (and 
sometimes incompatible) ATC 
systems, involving many different 
computer operating systems and pro- 
gramming “languages". It is impossi- 
ble start again, so the task is one of 
updating, renewing, harmonising and 
integrating these myriad systems. 

Broad targets for Eatchip include: 

• Implementing a Central Flow 
Management Unit (CFMU) in Brussels 
by the end of 1995, supported by com- 
prehensive radar usage throughout 
continental Europe; 

• En-route radar separation of five 
nautical miles between aircraft in 
high-density traffic areas, and of 10 
nautical sizes elsewhere by 1995; 

• The progressive integration of 
ATC systems, after harsonisation, in 
high-density areas by 1995, and else- 
where not later than 1998; and 


• Introduction of operational “Mode 
S" secondary-surveillance radar air/ 
ground date-links in high-density 
areas from 1998 onwards. 

Last June, the ECAC transport min- 
isters reaffirmed their unqualified 
support for Eatchip at a meeting in 
Copenhagen, and undertook to make 
the necessary investments in each 
country to achieve the required con- 
vergence of individual national 
systems. The latter will Involve tbe 
investment of more than Ecn3bn 
(£2J33bn) over the next three years. 

Eurocontrol is also preparing a 
“Concept of the Flexible Use of Air- 
space", to ensure that European air 
space is available for all users by 
reducing or eliminating areas cur- 
rently reserved for military aviation. 

Farther ahead is the controversial 
issue of which all-weather landing- 
aid system to adopt before the end of 
the century to replace the currently 
widely-used Instrument Landing Sys- 
tem which is under threat from 
increasing use of commercial radio 
broadcasting signals. The alterna- 
tives are either to adopt a Microwave 
Landing System or move to the US- 
developed satellite-based Global Posi- 
tioning System. 

Opinions differ widely throughout 
world aviation on the best system to 
adopt Hie International Civil Avia- 
tion Organisation (ICAO) has called a 
conference for next March, with the 
aim of settling the matter. 

Michael Donne 



Amsterdam's Schiphol airport 


Amsterdam 


Schiphol has grand 
plans under way 


Amsterdam’s Schiphol Airport 
is in the middle of an ambi- 
tious, multi-billion guilder 
expansion drive that will allow 
it to handle 40m passengers a 
year by the year 2015. This is a 
near doubling compared with 
the 21.3m passengers who used 
the airport in 1993. 

The airport also hopes to 
build a new, fifth runway 
around the turn of the century. 
Opponents of Schiphol’s goal of 
becoming one of the Europe's 
“mainport" for air traffic are 
focusing their attention on try- 
ing to delay the runway’s con- 
struction. 

A milestone in the expansion 
programme was reached in 
May 1993 when Schiphol's ter- 
minal extension was opened in 
May 1993, boosting potential 
capacity to 27m passengers a 
year from 19m previously. 

The extension, used primar- 
ily as a base for intercontinen- 
tal flights, was designed so 
that Schiphol could retain its 


“one-terminal" structure, mak- 
ing transfers easier for passen- 
gers. 

Schiphol is aiming to keep 
its future expansion within 
this one central terminal, 
although satellite terminals 
may be necessary in the 21st 
century. 

Transfer passengers, particu- 
larly those from regional air- 
ports in the UK, are crucial to 
SchiphoL In 1993, 43.4 per cent 
of all passengers arriving on 
scheduled flights were stop- 
ping over to catch a connecting 
service. 

In August. Schiphol opened a 
new pier dedicated to regional 
airlines, as part of its strategy 
of strengthening its position as 
a European aviation hub. 

Like other airports. Schiphol 
has a wide range of facilities 
for business travellers, includ- 
ing office space, lounges and 
meeting rooms. 

Ronald van de Krol 



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EUROPEAN AIRPORTS 4 


Michael Donne looks at the case for expansion in southern England 


Coping with the crowds 


Months before the public 
inquiry into the proposed Ter- 
minal 5 at Heathrow, London, 
pressure is building for further 
airport expansion in southern 
Rngfanrt 

The inquiry, in May next 
year, will examine the case for 
Terminal 5 set out by BAA 
which owns Heathrow, Gat- 
wick and Stans ted in south- 
east England as well as South- 
ampton in the south- east and 
Glasgow, Edinburgh and Aber- 
deen in Scotland. 

The company says that by 
2015 traffic at BAA's south- 
eastern airports will have 
soared from more than 70m 
movements now to about 160m. 
If terminal capacity does not 
increase, traffic will be lost to 
European competitors, such as 
Amsterdam, Frankfurt and 
Paris. 

BAA says It will self-finance 
the £900m Terminal 5. If work 
starts by 1997. the first phase 
will be completed by 2002, 
adding 15m passengers a year; 
phase 2, expected to finish by 
2013. will double this to 30m. 
The extra space will raise 
Heathrow's capacity to 80m 
passengers a year; in the 12 
months to this September it 
handled 50.3m. 

BAA says that over the past 
20 years, the number of passen- 
gers at Heathrow has more 
than doubled, while the num- 
ber of people affected by noise 
has been reduced from 2m to 
fewer than 500,000 by the use 
of quieter aircraft 
When Te rminal 5 is com- 
pleted, BAA says this number 
will have fallen to about 
300.000. The company encour- 
ages the use of quieter aircraft 
by offering discounts on air- 
port charges for them and pen- 
alties for noisier ones. 

If approved, Terminal 5 
would create 6,000 jobs - not 
including those in construction 
work - and 8,000 existing jobs 
would be protected. Heathrow 
generates 70,000 jobs, and the 
airport and the businesses It 
supports contribute £3bn a 
year to the economy. 

Airlines and other aviation 
businesses strongly favour Ter- 
minal 5. But opposition is 
expected from residential and 
environmental lobbies around 
Heathrow - despite the BAA's 
rejection of another runway 
and its promises that every- 






London Cfty Afrport the airport is noted for its pleasant stress-free terminal tecfittes 


thing would be done to lessen 
environmental problems. 

Long before Terminal s is 
fully operational however, 
BAA and the airlines will have 
begun to think hard about how 
to cope with further traffic 
growth. New terminals are 
under consideration for Gat- 
wick and Stansted and another 
runway will be needed at one 
of the southern airports. 

The runway debate is becom- 
ing contentious. BAA, believes 
that a new one is not likely to 
be needed elsewhere In the 
south-east at least until 2010, a 
view supported by a Depart- 
ment of Transport working 
group. Runway Capacity to 
Serve the South East 
(Rucatse), which says “benefits 
to passengers could provide a 
case for a further runway at 
Heathrow or Gatwick by 2010 
or, if this were not provided, at 
Stansted by 2015". 

Rucatse says there is scope 
for making more use of exist- 
ing airport capacity in the 
south-east than had been 
assumed, and that greater use 
of regional airports would also 
help to delay the need for 
expansion in London. 

It identified possible sites for 
additional runways at the four 
main London airports, and 
looked at the plan for an off- 
shore airport near Sheerness 
(Marinair). Rucatse was not 
asked to make any formal 


recommendations but its 
report was intended to stimu- 
late debate in UK commercial 
aviation. 

The airlines believe that if 
traffic increases, another 
south-east runway would be 
needed - by 2005 rather than 
2010 - at either Heathrow or 
Gatwick, to benefit from 

exp anding inter-lining (con- 
necting) traffic. 

The British Air Transport 
Association (Bata), represent- 
ing the airlines, says that traf- 
fic growth has outstripped pro- 
jections, and could reach the 
160m level by 2010 rather than 
2015. A study it commissioned 
from Alan Stratford and Asso- 
ciates shows that London's 
capacity would be exhausted 
by 2012 (near the time that Ter- 
minal 5 would be working) and 
that by 2015 there would be 
more than 99m passeng wra tOO 

many for London’s airports. 

“This clearly points to the 
need for new runway capacity 
to be provided in the early 
years of the next century, even 
if Ter minal 5 and PTparicinng 
at Luton and Stansted are 
sanctioned,” says Bata. 

“If new (runway) capacity is 
to be provided, the Heathrow/ 
Gatwick axis is the most effi- 
cient location for it” 

Earlier this year the Char- 
tered Institute of Transport, in 
its report “New Solution for 
Heathrow”, also argued that 


Rucatse under-estimated the 
urgency of the need for addi- 
tional runway capacity at 
Heathrow, and did not “ade- 
quately assess the broader eco- 
nomic issues and the vital con- 
tribution which air services 
make to the prosperity of the 
economy". Nor did Rucatse 
fully acknowledge “the 
advances in aeronautical tech- 
nology which have substan- 
tially reduced, and will con- 
tinue to reduce, the adverse 
environmental impacts of air- 
line operations." 

The institute said more air- 
craft could use the airport if 
parallel runways were built 
closer to the runways. 

Meanwhile, other expansion 
schemes are emerging*, an inde- 
pendent company has proposed 
redevelopment of the airfield 
at Redhill near Gatwick. as a 
“reliever” airport BAA contin- 
ues to spend large sums on its 
own airports. Apart from Ter- 
minal 5, which will cost £100m 
even before the planning 
inquiry starts, the company 
has earmarked £3-5bn for capi- 
tal expenditure at all its air- 
ports in the next 10 years. 

The John Mowlem-owned 
London City Airport is steadily 
expanding, forecasting up to 
460,000 passengers in 1994, 
compared with 245,000 in 1993 
and hoping for lm passengers 
a year by the end of the cen- 
tury. 


Paris 


Expansion comes 
under scrutiny 


The battle over how to 
accommodate more aircraft 
and passeugers in the Paris 
region appears to have been 
suspended until after next 
spring’s presidential and 
municipal elections. 

Aeroport de Paris (ADP), the 
public operator for both 
Charles de Gaulle at Orissy 
and Orly, bad planned to build 
a third runway at Orissy by 
1997 or 1998. But the question 
is now being scrutinised by a 
special commission that is not 
due to present its conclusions 
until June next year. 

The commission is also 
looking at the Idea of building 
a third airport in the capital 
area to relieve pressure on the 
two existing facilities which 
have not reached saturation 
but could do so if air traffic 
continues to increase. 

One analyst said be expected 
the commission to come down 
in favour of both schemes, as 
it would take about 20 years to 
complete the new airport 

Meanwhile, the ADP projects 
aircraft movements and pas- 
senger traffic to rise by an 
annual average by 3 per cent 
over the next five to 10 years. 

If the analyst is right the 
government could have a num- 
ber of schemes to choose from. 
Four schemes have already 
been drawn up: two in the 
Amiens region, one near 
Chartres and the other near 
Chalon-Sur-Sone. all of which 


B elgium's international 
airport in Brussels has 
long suffered the strain 
of serving thousands of Euro- 
crats. business travellers, 
MEPs and their famili es who 
have migrated to Europe's cap- 
ital since the 1960s. 

Built in 1958 for the World 
Expo in Brussels, it preceded 
the influx of people working 
for European institutions and 
was created in order to serve 
6.6m passengers per year. Last 
year, that limit was exceeded 
by 4m. 

The crowded ter minal , 
lengthy waits at passport con- 
trol and old-fashioned baggage 
carousels will next month 
become history. 

Brussels Airport Terminal 
Company (BATC) has invested 


are far from the capital. 

Of the two existing airports, 
Orly is the most congested. 
Runways are operating almost 
at fun capacity for three to 
four hours a day, compared to 
one to two hours at Charles de 
Gaulle. 

This is the reason transport 
minister Bernard Bosson cites 
for seeking a ban on smaller 
carriers from peak travel 
hours on busy routes from 
Orly in mid-1995. Initially the 
ban was to apply to only the 
Orly to London route but it is 
now to be widened. 

Protests from local politi- 
cians and residents sway 
over the plans before the com- 
mission was set up, and the 
government had agreed to 
shift eastwards the location of 
the proposed third runway at 
Charles de Gaulle. 

It also said it was giving up 
the original long-time 
“hypothesis” of increasing 
passenger traffic to 80m from 
the present 27m. The original 
plan included the possibility of 
h andin g five runways. 

Mr Bosson said that the con- 
cerns of local residents were 
also behind the decision to 
keep aircraft movement at 
Orly down to the current level 
of about 200,000 a year instead 
of allowing them to increase to 
330,000 an idea that was first 
mooted by the ADP, chief 
spokesman Jacques Reder 
said. 



r - n*’ , 

I'-- 1 ! . i . • 



fgr- ' . 








Chartes da Garte: work continues on terminal extender) 


Even so, work continues on 
the extension to terminal two 
at Charles de Gaulle, with E 
wing due for completion in 
1997. 

This will follow the opening 
earlier tins month of the high 
speed train and urban KEB 
train’s so-called interchange 
module in the centre of termi- 
nal two. 

to addition FF250m will be 


Brussels 


Belgium’s dinosaur 
is put to rest 


BFr20bn in a new terminal 
which is due to open on 
December 1L The terminal will 
be trig enough to shift some 
15m passengers per year, a 
limit it is rapidly expected to 
meet. 

The new concourse repre- 
sents only phase one of a mas- 
ter plan far the airport Well 
served with runways - Zaven- 
tem has three - BATC says it 
hopes to construct another 


concourse by the year 2,000. 

The developments which are 
due to open next month are 
particularly important for Bel- 
gium, a member of the Schen- 
gen free travel agreement 
which cavers all EU countries 
except the UK, Denmark and 
Ireland. 

This will come into place 
some time in the new year and 
will allow the Belgian authori- 
ties to separate easily Schsn- 


spent at Qriyr over the next 

two years to, ehahlethe'west 
and south temrinals to handle 
both.- international and 
national traffic rather than 
specialising as they do attire 
moment. 

This is intended to iron out 
the traffic peaks in both caste, 
Mr Reder added.. 

* Barbara Casassus 


gen passengers, who .will not 
be requiredto show thfiir pass- 
ports at the immigration 
counter, from pa ss e ng ers foam 
the rest af the wodd,. who wOL 

With one of the Mgftgid: per: 
ttentngftg of business travufieis 
in Buropei'the new co n c o u r se 
has been built with a special 
eye to their needs. 

An unwritten goal far BATC 
is that at non-peak hours, it 
should only take passengers 20 
’ minutes from when they park 
their car, or alight from their 
taxi, to when they board the 

plan p 

The new concourse will also 
house a business centre, with 
meeting rooms and offering 
secretarial services. 

Emma Thicker 
















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Foraweajtker-Lusine, 
and a healthier life 


: - '-A 




FINANCIAL TIMES 

COMPANIES & MARKETS 

Tuesday November 15 1994 


Mercedes 

Rental 


Available from only 
£64 per day at your 
nearest dealer 



■ - 


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Errata Tj 


IN BRIEF 


Hoechst chief 
sees bright future 

SS-SS; 

SSE^St*** ** JQrgen a™*®, chairman, 

“8 P*^ rise 

^ German pharmaceuticals 

y l ar 10 P^ r ““I to DMJHOm 
($202m) and turnover by between 12 per cent and 14 

Vita, boart dESL Sd 

He said the dividend would “at least" 
match last year’s DM14 22. Page 20 

Sjjrf*a*e acquires software group 

£2*** le ading suppiier of database software for 
la^eramputer networks, is to acquire Powersoft, a 
software development tools company, in a stock 
swap valued at about $782m. Page 21 

toechwrfovak Airlines seeks local investor 

Czechoslovak Airlines is about to enter talks with 
Czechfinandal institutions that could lead to a new 
shareholder injecting fresh capital into the loss- 
making carrier. Page 22 

Moteon to sell retail interests 

Canada's Molson Companies plans to narrow its 
focus to brewing and specialised chemicals, and to 
dispose of its retail hardware business. Page 21 

Telco ahead at Rs562.8m on record sales 

Tata Engineering and Locomotive Company (Telco), 
India’s leading commercial vehicle maker, saw 
operating profit in the six months to end-September 
almost double to Rs2-24bn ($71 2m) from RsL12bn a 
year earlier. Page 24 

Unbundled Barlow rises 48% 

Barlow Limited, the rump of South African con- 
glomerate Barlow Rand which was unbundled last 
year, reported after-tax profits of R4l2.4m ($117m) 
for the year, a rise of 47.8 per cent from the pro 
forma figures for the previous year. Page 23 

City sceptical on Cookson merger 

A combined Johnson Matthey - Cookson group 
would have a market value of about £L5bn ($4.lbn) 
and annual sales of £3.5bn propelling it into the 
UK’s list of top 100 companies. But analysts believe 
that, size apart, the rewards from putting the two 
together would be fairly modest Page 28 

Dimes battle comes to court 

A two year battle for control of Dunnes Stores, 
Ireland's largest retailer, moves to the High Court 
today when Mr Ben Dunne, the former chairman, 
will ask the court to break-up the family trust that 
has owned most of the company since the 1960s. 
PageSO 

Sketchley abns to rebuild. Image , 

Sketchley the UK cleaning company Is poised to 
embark on a marketing campaign in an effort to 
rebuild its image and increase awareness of its 
brand name. Page 29 

Companies In thls issue 




ACT - 

28 



Aim 

30 



Air Now Zealand 

23 



Axa 

21 



BASF 

1.18 

■s 

fi 

BBV 

BCH 

20 

20 


*1 

6 BMW 

20 

fit 

a 

BOC 

30 

fig 

8 

L B8kyB 

iaie 


I 

| Bangkok Bank of Comm 24 


2 

1 Bankets Trust 

18 


i 

I Barlow Limited 

23 

iW 

« 

Bo* (Graham) 

30 



Bett Brothers 

31 


•s 

Boots 

28,1,18 

V* 


Bom 

24 



British Steel 

31, 18. 18 



CLM Advisers 

30 

& 

1 

CSA 

22 


Chrysler 

19 

1 

s 

Cookson 

’ 28, 18 

4 

Dunnes 

30 



EVN 

23 

iT* 

f 

Qekhowatt 

20 


J 

Fairfax. John 

23 

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HortuneOfl 

14 

r; 

■VI 

Fujitsu 

23 

H- 


Gartmore Micro Index 29 

:}' 

i 

Hanover Be 

22 

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r . 

Hoechst 

20 


*4 

Jetstream Aircraft 

e 

!. 


^ Johnson Matthey 

2 a 18 

ft 


“ Kalamazoo 

30 


* 

Kmart 

21 



Kobe Steal 

’ Uoyd Thompson 

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30 


3 

Matheson Lloyd’s 

28 

> 


MsvfBe 

81 

l 

> 

Haricot Statistics 


hfitsubtahi Bectric 

Mitsubishi Estate 

Mitsui Fodosan 

Moison 

MonteShefl 

Montedison 

Newport 

News Corp 

News Inti 

Pearson 

Pilot Inv Trust 

RfT Capital Partners 

Record 

Sobering 

Sea Containers 

Sedgwick 

Senior Engineering 

Sharp 

She! 

Stebe 
Sketchley 
Smith (James) Ests 
Sony Music 
Stoga 

Suztid Motor 
Swiss Bank 
TWR 

Tabacatora 

Tata Engineering 

Tate Iron & Steel 

Teteglobe 

Thomson 

Toys R Us 

Trtoooox 

UAP 

UBS 

UK Estates 
Viacom 

Wardte Storeys 
West Japan RaBway 


e 

z+ 

24 

21 

19 

19 

31 

23 

81 

29 

30 

31 
30 

20 
28 

30 
14 

23 

19 

31 

29 
31 

24 
28 
24 
28 

1 

20 
24 
24 

1 

21 

21 

31 

28 

20 

30 
21 
29 


fArnwal reports service 34-35 

Benchmark Govt bonds 28 

Bond futures end options 2B 

Bond prices and yWds 2fi 

Cwwsodfos prices 
Dtvfdands announced. UR » 

B*S curancy rates » 

Eurobond prices 

Ffead Interest bxfic8S « 

FT-A World tadteas Bar* Pag 
FT Gold Aftas todax 33 

FT/ISUA Inti bond me » 

F-SE Actuaries iretices 33 


Forekjn exchange 
GfUs prices 
life wjutty options 
London share service 
London trad options 
Managed funds service 

Money markets 

few ind bond Issues 
few York share service 
Recent Issues, UK 
ShofMvm Int rates 

US interest rates 
Worid Stock I 


38 

£8 

33 

34-35 


38 

28 

40-41 

33 

38 


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24 


Kerkorian hits out at Chrysler 


By Richard Waters in New York 

Mr Kirk Kerkorian, the 
billionaire US investor who is the 
biggest shareholder in Chrysler, 
yesterday launched an attack on 
the carmaker’s anti-takeover 
defences and said he wanted to 
raise his stake in the company. 

In a letter to Chrysler’s board 
yesterday, Mr Kerkorian also 
called on the company to take 
steps which would increase the 
value of the company’s shares. 
These included undertaking a 
“meaningful** stock buy-back pro- 


gramme over the next year, rais- 
ing its quarterly dividend and 
enacting a two-for-one stock split. 
The Las Vegas-based investor 
said he had been rebuffed in ear- 
lier approaches to the company. 

The company's shares jumped 
5 per cent in heavy trading dur- 
ing the morning, lifting Chrys- 
ler's market value to $17bn. 
When Mr Kerkorian first bought 
his stake of more than 9 per cent 
in December 1990, the company 
was in the throes of a financial 
crisis and was valued at less than 
$3bn. 


Under a poison pill plan 
adopted in 1990 to ward off Mr 
Kerkorian. Chrysler's directors 
could thwart any attempt by an 
investor to take a stake of more 
than 10 per cent by giving other 
investors the right to buy addi- 
tional shares at half-price. 

At the time it was introduced. 
Chrysler said the plan was 
intended “to act in the best inter- 
est of all the company's share- 
holders if someone should seek to 
obtain a position of control or 
substantial influence over Chrys- 
ler". 


Tracinda, Mr Kerkorian's pri- 
vate investment company, indi- 
cated that it would seek approval 
under US anti-trust law to take 
its stake in the carmaker to as 
much as is per cent 
A week ago, a brief announce- 
ment by Mr Kerkorian which was 
filed with the SEC for regulatory 
purposes, prompted concern 
among Chrysler shareholders 
that he was preparing to sell part 
of his investment in turn hitting 
the company’s share price. 

TO conserve cash, the company 
halved its quarterly dividend to 


15 cents a share in 1991. This 
year, with the North American 
car markets booming, it has 
raised the dividend twice, to 25 
cents. 

Directors are scheduled to meet 
on December 1 to agree the next 
dividend payout 

Mr Kerkorian, whose current 
Interests include the MGM Grand 
Hwinn in T d fls Vegas, has become 
a close personal friend of former 
Chrysler chairman Mr Lee 
lacocca since 1990. Mr Iacocca 
stepped down from the Chrysler 
board last year. 


BSkyB chief may receive £2m bonus 


By Raymond Snoddy In London 

Mr Sam Chisholm, the chief executive of 
British Sky Broad casting, could receive 
up to £3m ($4.9m) this year in salary and 
bonuses, the pathfinder prospectus for the 
satellite television venture revealed. 

In addition to his salary this year of 
about £340,000, Mr Chisholm, who is 
regarded as a key figure in turning around 
BSkyB. has received £732,000 based on 0.5 
per cent of pre-tax profits in the 1993-94 
financial year. Since June 1992 BSkyB has 
moved from an operating loss of £47m to 
an operating profit this year of £170.lm. 

The document reveals that when the 
BSkyB share price is quoted. £7 .5m will be 


distributed among 11 present and former 
managers as a one-off payment. Of the 
total, £3. 6m will be paid to three current 
and proposed directors. Mr Chisholm is 
expected to receive more than half this 
total, possibly as much as £2m. 

The prospectus for the company's Lon- 
don and New York flotation also showed 
continuing growth in subscriptions. 

During the three months to the end of 
September this year, normally a quiet 
period for subscription growth, BSkyB 
added more than 162,000 new subscriptions 
through dish and cable networks, lifting 
the total to 3.65m. 

Mr Richard Brooke. BSkyB chief finan- 
cial officer, said “the relentless growth” 


was continuing despite the October price 
increase of £3 a month to all programme 
packages, taking the top price for all chan- 
nels to £22.99 a month and increasing the 
basic service from £699 a month to £9.99. 

BSkyB. a consortium in which Pearson, 
the media group that owns the Financial 
Times, now has a 179 per cent stake, 
claimed the company had experienced “no 
material change” in the rate of disconnec- 
tions since the price increases were 
announced last August In the past three 
years the annual rate of disconnections 
had been cut by more than half to its 
present figure of around 13 per cent This 
compares with a so-called “churn rate” 
experienced by some cable companies of 


between 30 and 35 per cent 

BSkyB confirmed that the 20 per cent of 
the enlarged share capital which is to be 
floated is likely to be priced at between 
233p and 26Sp valuing the company at 
between £4bn and £4.6bn. Net proceeds 
from the global offering based on a mid- 
point pricing would be around £810m 
although a new external bank loan will 
bring new money to £L2lbn. 

The money will be used to repay share- 
holder debt or shareholder guaranteed 
bank debt with Mr Rupert Murdoch's 
News International which at present owns 
50 per cent of BSkyB drawing around 
£60Qm in cash. 

Lex, Page 18 


Richard Waters reports on a failure of leveraged swaps 



Li 


everaged swaps have 
turned into the Achilles 
heel of Bankers Trust’s 
derivatives business. 

The bank says it has sold these 
instruments to fewer than a 
dozen companies, all of them in 
the US. But at least two of these 
companies have since filed law- 
suits over multi-million dollar 
losses they incurred. And an 
internal investigation has uncov- 
ered. breaches of the bank's rules 
in the way other leveraged swaps 
were sold to companies, Leading 
to the removal of six executives 
from their posts last week. 

In an interview before the 
internal actions last week, Mr 
Charles Sanford, the bank's 
r.hairman , refused to comment on 
the legal cases - a $13Qm claim 
from Procter & Gamble, the con- 
sumer products group, and a 
$78m lawsuit from Gibson Greet- 
ings, a greetings card company. 
But, referring to companies 
which buy complicated financial 
instruments, he said: "Everybody 
has to have risk management." 

Whatever the merits of the law- 
suits and the outcome of Bankers 
Trust's internal review, the expe- 
rience of recent weeks raises 
some questions. 

First, should the bank have 
been, selling these instruments to 
companies at all? Under a lever- 
aged swap, the normal payments 
that would be made under an 
interest rate swap agreement are 
multiplied, making them more 
volatile when market rates move. 

Mr Brian Walsh, the bank’s 
head Of derivatives, soys many 
companies last year were 
engaged in "aggressive hedging" 
- an apparent contradiction in 
terms. In some cases, it proba- 
bly was {speculation!,” he says. 

Knowing this, was the bank 
right to sell such instruments to 
Don-financial companies? Accord- 
ing to Mr Walsh, leveraged swaps 
were only sold to companies with 
sophisticated treasury depart- 
ments capable of understanding 
and managing the risks. 

Mr Sanford, meanwhile, says 
the bank will follow a “belt and 
braces" approach in future, tak- 
ing extra care to ensure compa- 
nies understand what they are 
buying. With regulators breath- 
ing down its neck, the bank is 
likely to seek to control its deriv- 


■< 


Risky business 
reveals US bank’s 
Achilles heel 


Shell pays Edison 
$152m for control 
of Italian venture 


By Andrew HU in Man 

Royal Dutch/Shell is to 
strengthen its presence in Italy 
by buying the half-share of the 
MonteShefl petroleum joint ven- 
ture which belongs to Edison, the 
energy subsidiary of the Montedi- 
son industrial group. 

Shell Italia, the group’s Italian 
subsidiary, is to pay L238bn 
(¥lfi2m) for total control of the 
refining, transport, storage and 
distribution operations of Mon- 
teShefl, which was formed in 
1987. MonteShefl has a 7.6 per 
cent share of the Italian market 

The two companies announced 
yesterday that they had reached 
agreement on the sale, which 
should be completed early next 
year. The price will be fixed after 
MonteShefl reports its 1994 
results. It is the second big deal 
struck by Montedison and Shell 
in the past year. 

The Italian company is 
restructuring following its near- 


collapse in 1993, while the Anglo- 
Dutch group is pursuing a pro- 
gramme of expansion in Italy. 

Under the terms of the prelimi- 
nary agreement on MonteShefl, 
Edison will pay MonteShefl 
L58bn to retain a 50 per cent 
stake in its liquid gas operations 
and in some industrial activities 
near Trieste. 

Montedison and its financial 
holding company Ferrum have 
been pursuing a divestment pro- 
gramme since last December in 
an attempt to reduce debt 

Yesterday, Montedison said 
that the proceeds of the Monte- 
Shefl sale would be reinvested to 
help develop the group's energy 
sector. 

Edison, which is listed on the 
Milan Stock Exchange, is the big- 
gest of Italy’s private energy pro- 
ducers and could benefit from a 
liberalisation of the sector after 
the privatisation of Enel, the 
statoowned electricity company, 
next year. 


Demand 

bolsters 

British 

Steel 

By Andvw Baxter In London 

British Steel, Europe’s second 
largest steelmaker, is raising its 
interim dividend from 0.5p a 
share to 2p after a surge in half- 
year pre-tax profits from £27m to 
£15Sm ($260. 7m). 

The company reported its best 
interim results since 1990/1991 
yesterday. Mr Brian Moffat, 
chairman and chief executive, 
said the rise in the dividend 
reflected the better results and 
the more favourable economic 
outlook. Prospects for the second 
half were encouraging, he said, 
with demand in the UK and con- 
tinental Europe expected to grow 
by about 5 per cent this year. 

The company has indicated to 
analysts that the interim payout 
could represent one-third of its 
total dividend for the year, indic- 
ating a final payment of 4p and a 
total of 6p. That compares with 
just 2p for 1993/94. 

The City of London had been 
expecting a big rise in British 
Steel profits and in the interim 
payout, and the shares dosed lp 
higher last night at 159%p. 

Some analysts raised their 
profit forecasts. Mr Tony Lance- 
loti at UBS, one of the British 
Steel house brokers, lifted his 
forecast this year from £375m to 
£400m. 

British Steel is benefiting from 
a worldwide increase in steel 
prices as demand rises and sup- 
ply is squeezed. Volumes and 
prices rose about 6 per coat in 
the first half. Mr Moffat said 
that, in D-Mark terms, continen- 
tal European steel prices were 
still about 10 per cent below 
1989 levels, and steelmakers 
would be looking to recoup at 
least that difference. 

UK plants are working at 95 
per cent capacity, even though 
UK steel demand is still 25 per 
cent below its 1989 peak. 

Mr Moffat said steel demand to 
developing countries was grow- 
ing by 5-7 per cent a year com- 
pound, and already accounted 
for 43 per cent of total steel 
demand worldwide. 

British Steel, he said, would 
continue to press the European 
Commission to resolve the subsi- 
dies issue, following the partial 
withdrawal of the Commission’s 
steel rescue plan. 

He was encouraged by the 
refusal of Mr Tim Eggar, UK 
industry minister, to endorse the 
latest proposal to support Eko 
Stahl, the east German steelma- 
ker. A rescue plan has to be 
agreed unanimously by EU 
industry ministers. 

Lex, Page 18; Details, Page 31 


atives sales force more closely. 

For a bank that has been at the 
forefront of developments in the 
derivatives markets, putting the 
brakes on ambitious staff could 
cause problems. Mr Sanford, who 
has himself been something of a 
visionary in the growth of deriva- 
tives, says: “I hope we will 
always be an innovative com- 
pany with good products.” 

Second, does the failure of the 
leveraged swaps reveal a deeper 
weakness in Bankers Trust’s abil- 
ity to manage financial risk? 

“They didn't work out as well 
as we'd like,” says Mr Sanford of 
the disputed contracts. But be 
adds: “In the rest of the deriva- 
tives business and the rest of the 
bank, we didn’t feel any prob- 
lems" from the upheaval in finan- 
cial markets this year. 


C 


, ertainly, the bank's man- 
agement of risk in its own 
trading business this year 
has been more effective than 
many other big traders, whether 
hedge funds or other banks - 
though it failed to repeat last 
year's $1.6bn of revenues from 
trading, much of it from propri- 
etary trading. 

“We’ve outperformed most of 
our competitors with a J5-J6 per 
cent return on equity, even with 
a big capital base.” says Mr San- 
ford. “If this is our low year, 
that’s not at all bad." For now, 
the bank has pulled in its horns, 
withdrawing much of its capital 
from proprietary trading - 
though it expects to return in 
force when conditions improve. 

Third, do the cases reveal a 
deeper weakness - a lack of the 
sort of lasting relationships with 
big US companies that will sup- 
port its business in future? While 
the bank has made a successful 
business out of raising finance 
for below-in vestment grade com- 
panies. its dealings with big com- 


panies have tended to come 
either through its trading busi- 
ness, or through its trust and 
custody business. 

Mr Sanford concedes: “Our his- 
tory has been not having a strong 
relationship with the top tier of 
corporations.” He adds, though, 
that the bank has made headway 
in recent years in this area. 

The bank's relationship with 
Procter & Gamble was not han- 
dled by a single relationship 
manager. That is not surprising, 
given that Bankers Trust claims 
to have sold derivatives to 3,100 
different entities over the years. 
“With all these counterparties, 
there will be lots where the rela- 
tionship is at the product man- 
agement end.” says Mr Sanford. 
But as the leveraged swap experi- 
ence is showing, that strategy 
can break down when product 
managers are loosely controlled. 

For now, Bankers Trust’s head- 
aches seem to confirm the scepti- 
cism that has dogged it through 
the 1990s. Despite a spectacular 
post-tax return on capital of more 
than 20 per cent in each of the 
past four years, the bank's shares 
have consistently traded at a dis- 
count to its peers. 

Mr Sanford is unapologetic. 
The bank will not change its stra- 
tegic direction, he says. The case 
for derivatives - that they pro- 
vide a way to manage risks more 
effectively, whether for compa- 
nies, investors or banks - stands. 

“I don't see it slacking off in 
intellectual or practical inten- 
sity." he says. “It's a technique 
for risk management that is so 
efficient, I don't think that it will 
slow down." 

In its lawsuit against the bank, 
even P&G talks of the way deriv- 
atives can hold down borrowing 
costs or reduce risk. Says Mr San- 
ford: "Most senior managers [in 
corporates] are now locked into 
using derivatives." 



This announcement appears as a ronnw of record only 


Growth Capital 


irst 

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£4,000,000 

to fund the development and publication 
of new multimedia titles 


Structured by: 

3i pic 

Funds provided fey? 

3i Group pie 

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3 i LegaJ 

First Inffonnation Group was advised by: 
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Norton Rose . 



urtiUrma Imhutrr 


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31 Group pk md 11 pic are regulated il the conduct of hnaUnm hmncu b* SIB 







FINANCIAL TIMES TUESDAYNOVEMBER 15 1994 


INTERNATIONAL COMPANIES AND FINANCE 


Hoechst sees market value 


doubling by year 2000 


By Christopher Partes and 
Daniel Green in Frankfurt 


The stock market value of 
Germany's Hoechst chemicals 
and drugs group will double by 
the end of the decade, follow- 
ing restructuring and. a man- 
agement shake-out, Mr JQrgen 
Dormann, chairmanjaid. 

Mr Dormann. who has made 
wide changes in management 
and operations since taking 
over in May, also alms to dou- 
ble sales in Asia from 10 per 
cent to 20 per cent of group 
turnover. 

Outlining his ambitious pro- 
gramme. he told the Financial 
Times he would continue 
looking for a further ‘two or 
three” mid-sized pharmaceuti- 
cals companies to add to 
Hoechst’s recently-acquired US 
interests in generic drugs. 

However, he would wait 
until prices became more rea- 
sonable. Hoechst had “per- 
haps" paid too high a premium 
in last year’s purchase for 
$546m of a 51 per cent stake in 


Copley, a US generic drugs 
maker, he said. 

Industrial gas production 
would be expanded with a new- 
ly-approved scheme to invest 
DM500m ($327.22m) in the com- 
pany’s Messer Griesheim sub- 
sidiary. 

Hoechst had taken a risk 
spending heavily on moving 
into emerging east European 
markets, but all its new busi- 
nesses there had become profit- 
able within 12 to 18 months of 
start-up. Negotiations were 
under way for several joint 
ventures in China. 

In one of the chemical indus- 
try's most persistent problem 
sectors. Mr Dormann said fur- 
ther measures might be neces- 
sary to reinforce Hoechst’s 
restructured PVC production. 
Most of its operations were 
merged last year with those of 
Wacker of Germany into a new 
company. Vinnolit, which 
accounts for some 10 per cent 
of west European production 
capacity. But this was not 
enough. Mr Dormann indi- 


cated, and there could be room 
for a third partner. 

Combined with structural 
changes effective from January 
1, which will reduce the num- 
ber of operating divisions from 
15 to seven and transfer 
responsibility for divisional 
strategy and profits to their 
managers, the result would be 
“a doubling of our share price 
by 2000”, Mr Dormann said. 

He also revealed he was 
reconsidering his plans, drawn 
up in his previous job as chief 
financial officer, for an initial 
public offering of shares in the 
US subsidiary. Hoechst Cela- 
nese. An international placing 
of shares in electrodes subsid- 
iary Sign Great Lakes Carbon, 
however, was still set for next 


Groups bid 
for Spanish 
telecoms 
licence 


By Tom Bums in Madrid 


spring. 

The placement plan for Cela- 
nese was originally intended to 
consolidate its Independent 
status, but Mr Dormann said 
his decentralisation project 
should serve the same purpose. 
“We will know in another 12 
months, ” he said. 


Sobering chief forecasts annual 
profits ahead 10% at DM3 10m 


By Judy Dempsey in Berlin Sobering 


Profits at Sobering, the 
German pharmaceuticals 
group, will rise this year by 10 
per cent to DM310m ($202m) 
and turnover by between 12 
per cent and 14 per cent, Mr 
Giuseppe Vita, board chair- 
man. said yesterday. He said 
the dividend would “at least” 
match last year's DM14J22. 

Mr Klaus Pohle, chief finan- 
cial officer, said he expected 
group sales to increase by 
about S per cent a year until 
the end of the century, more 
than 4 percentage points 
higher than the industry's 
expected average growth. This 
would boost Sobering's turn- 
over to DM7bn-DM8bn. 

Growth is attributed to the 
wider marketing of the Betase- 
ron drug, a treatment for mul- 
tiple sclerosis: the introduction 
of Levovist, an ultrasound 
drug: and the recent decision 
to refocus on pharmaceuticals. 

In the first nine months of 
this year, net profits rose 8 per 


Share price (DM) 
12QO 



Source FT Graphitn 


cent to DM210m, compared 
with the same period in 1993, 
while turnover increased by 14 
per cent to DM3.52bn. Net prof- 
its for the whole of 1993 
totalled DM254m, with turn- 
over at DMEL3bn. 

The optimistic forecasts for 
the next five years stem from 
Schering’s decision two years 


ago to divest its industrial 
chemicals and natural sub- 
stances divisions, and hive off 
its agrochemical divisions into 
a joint venture with Hoechst. 
which took effect last January. 

Mr Vita said he expected the 
Betaseron drug, currently only 
on sale in the US. to obtain 
approval for distribution in 
Canada in the middle of next 
year, as well as in some Euro- 
pean countries. 

“We expect turnover of 
Betaseron to increase to 
DM350m by the end of this 
year." he said. Turnover for 
the first nine months totalled 
DM230m. The Levovist drug 
would boost sales by between 
DM300m and DMSOOm. 

Turnover for Cyproteronace- 
tat, or CPA a drug containing 
hormonal treatments and 
which is used for contracep- 
tives. fell 3 per cent between 
September and October follow- 
ing unconfirmed reports that 
the drug contained a carcino- 
gen, a substance that encour- 
ages the growth of cancer. 


(This announcement appears as a matter of record only). 


October 1994 




— :v ■ 


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kS 


EUROPEAN INVESTMENT BANK 


Pesetas 20,000,000,000 


10,90% 

Notes due 1.998 


BANCO SANTANDER DE NEGOCIOS, S.A. UNION DE BANCOS SUIZOS 


DEUTSCHE BANK, S.A.E. 


BANQUE BRUXELLES LAMBERT 

Sucursal en Espafla 


BNP ESPANA S.A. 

Grupo Banque Nation ale de Paris 


CREDIT COMMERCIAL DE FRANCE 

Sucursal en Esparia 


CREDIT LYONNAIS 


MIDLAND BANK pic. 
Sucursal en Espana 


SBS SOCIEDAD DE VALORES 
Grupo Swiss Bank Corporation 


TOKYO SOCIEDAD DE VALORES Y BOLSA ESPANA, S A. 
Bank of Tokyo Group 


Paying Agent 




BANCO SANTANDER SA. 


Santander Investment 


Headquarters: Madrid (Spain), Plaza del Marquis de Salamanca, 3 y 4 * 28006 Matfrid»Ttf. {341)4357766-435 7788 
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■ Banco Sorander da Nagmc. llemaarof SW. 


UBS holders urged to reject change 




Via 


By Ian Rodger in Zurich 


Two consortia. both 
predominantly backed by 
domestic capital and each 
including foreign operators, 
entered their bids yesterday 
for Spain's second mobile tele- 
phone licence. The licence will 
be awarded by the Spanish 
government before the end of 
the year. 

The competition pits the 
Cometa-SRM consortium, 
which has Banco Bilbao Viz- 
caya as its biggest individual 
shareholder, against Airtel- 
Sistelcom-Raditel backed by 
Banco Central Hispano and 
Banco Santander. 

The contest to operate a 
Global System for Mobiles 
(GSM) mobile digital network, 
which will compete with one 
reserved for Telefdnica. the 
state-controlled communica- 
tions group, is the first big 
step in a deregulation package 
which, over the next three 
years, will introduce cable 
television and end Telefonica’s 
monopoly as a national basic 
telephony operator. 

“This is the most significant 
investment challenge in Spain 
to date because it involves the 
hreak-up of voice monopoly.” 
said Mr Claudio Boada, man- 
aging director in Spain of the 
US investment bank Lehman 
Brothers, which is advising 
the transport and communica- 
tions ministry. 

The bid is one of the biggest 
domestic investment outlays 
on record to capture what is 
regarded as a very high 
growth market. There are 
some 400,000 subscribers for 
Telefdnica’s existing analogue 
cellular system. Mr Boada 
believes that over the next 10 
years the GSM system will win 
a 12 per cent market penetra- 
tion in Spain and 4m subscrib- 
ers. 

The consortia must bid a 
minimum of Pta50bn (S3 93m) 
to obtain the licence, but ana- 
lysts believe the real net value 
of the licence could be some 
PtalSObu. Hie winning consor- 
tium will then face an initial 
investment of some Ptal20bn. 

Officials say the bids will 
begin to be reviewed next 
week, and the decision will be 
announced by December 31. 


Union Bank of Switzerland 
.shareholders have been recom- 
mended to vote against the 
board's controversial proposal 
to convert its registered shares 
into bearers. The advice, in 
what is a setback for UBS, 
comes from a leading US 
adviser to institutional inves- 
tors on corporate governance 
issues. 

Institutional Shareholder 
Services (ISS). a proxy advi- 
sory service, said the UBS 
board's proposal, which wiD be 
put to an extraordinary meet- 
ing of shareholders next Tues- 


day. violated the principle that 
basic company structures 
should not be altered in the 
midst of a battle over control. 

The governance of UBS is 
being challenged by BE Vision, 
an investment company that is 
its largest shareholder. BE, 
controlled by maverick Zurich 
broker Mr Martin Ebner, is 
seeking to rally a majority of 
shareholder votes at the next 
general shareholders' meeting 
in April to make substantial 
changes to the bank's board 
and strategy. 

UBS has claimed the chal- 
lenge had an unfair rihaneA of 
succeeding because its backers 


were accumniating large num- 
bers of registered shares. . 

The par value on the regis- 
tered shares is one fifth that of 
the bearers. Investors can thus 
acquire vote more cheaply by 
. buying registered, shares. than 
by buying bearers. ' V ' ; - 1 - ’ - 
ISS. founded 10 years ago by 
Mr Bob Monks, a pioneer of the 
US corporate governance 
movement, said' the moyei by 
the bank to strip the registered 
shares of their extra voting 
power without compensation 
was unacceptable. 

“While we agree that allow- 
ing any shareholder to influ- 
ence or control the bank with-. 


out controlling a majority cif 
its share capital would be 
improper, allowing the bank to 
dtsehfrant^ise -and Cause eco- 
nomic damage to a whote dass 
of. shareholders because Of a 
dispute about strategy, with 
ode individual > is . also 
.i mp roper,” ESSsaitL 
- The r mbammenda tfon • from 
ISS, which provides advice. -on 
worldwide proxy' voting for 
same 75 institutional invest or s, 
is a setback lor UBS. . / ‘ 
The bank is counting heavily 
on . the support of noifcSwiss 
s hareholde r s, saying as holders 
of bearer Shares they can only 
benefit if the motion ispassed. 








BMW’s US plant first in global network 


By John Griffiths 
in Spartanburg, South Carolina 


BMW is to open a new $600m 
car manufacturing facility in 
the US today. Mr Bemdt Pis- 
chetsrieder, chairman, 
described the Spartanburg 
plant yesterday as “only the 
first" of a global network of 
manufacturing sites which will 
preclude further expansion in 
Germany. 

BMW sees the plant as by tor 
the single most important 
manufacturing step it has 
taken outside of Europe. 

Mr Pischetsrieder insisted 


the plant, where 570 employees 
earn little more than one-half 
of their German counterparts, 
and which - on current 
exchange rates - has costs 
some 30 per cent lower, was 
not a signal that BMW was 
“emigrating” from manufactur- 
ing in Germany. 

However BMW’s four exist- 
ing plants could meet all fore- 
seeable demand for its cars in 
Europe, within its strategy of 
remaining an "exclusive” car- 
maker with a world market 
share of around 2 per cent 

"We don’t want to grow in 
Europe,” said Mr Pischets- 


rieder. BMW would now con-, 
centra te on developing a global 
component supply infrastruc- 
ture and manufacturing net-, 
work for the BMW and Rover 
brands, he said. . 

BMW has declared a 
long-term goal of producing 
90,000 cars a year at the US' 
plant, probably before the end 
of the decade. But according to 
Dr Helmut Panke. chairman 
and chief executive of BMW 
(US) Holding, and in charge of 
all BMW's North American 
activities, the plant may have 
to expand farther - to 120,000 
or 130,000 units annually - if 


BMW is .to achieve the fuff ben- 
efits of flexibility within . a 
global production system. 

“In the long run there will be 
other opportunities . ; . that’s 
why we have a 1,000-acre (Spar- 
tanburg) site.”. 

•Although only being for- 
mally opened today, the plant 
has been to limited production 
since September, ft is making 
only 12 cars a day but this is 
doe to rise to 150 a day. by the 
middle of next year and 300 a 
day to 1996. Initial production 
is of 3-series saloons, to he 
joined by a new -open two- 
seater next September. 


Elektrowatt net income 
falls just short of record 


Tabacalera looks abroad 


for expansion targets 


By Ian Rodger 


Elektrowatt the Swiss power 
generation and engineering 
group, said net income in the 
year to September 1994 was 
slightly below the previous 
year's record SFr212m ($165m). 
No figure was given. 

Mr Oskar Ronner, chief exec- 
utive, said the group was hit 
hard by the strength of the 
Swiss franc. Consolidated sales 
rose only 3 per cent to 
SFr4.9bn and new orders were 
up 8 per cent. 

He added that the group 
would at least maintain its div- 
idend and held out the possibil- 
ity of a special bonus payment 
in recognition of its jubilee. 

Elektrowatt to which the CS 
Holding financial services 
group has a 46.3 per cent stake, 
said sales of electric power 


were 4 per cent higher at 
SFrLTbn. 

The engineering and con- 
tracting division lifted sales 6 
per cent to SFr900m, but 
incurred a loss because of pro- 
visions on two projects. 

• Hoiderbank FmancKre da- 
rns. the world’s largest cement 
producer, expects consolidated 
net income to jump 48 J. per 
cent to SFr425m in 1994, due to 
improved results of subsid- 
iaries in Europe and North 
America. Net sales would rise 
32 per cent to SFr8.7bn, with 
shipments of cement and clin- 
ker rising &5 per cent to 492m 
tonnes, ir said. 

Mr Thomas Schmidheiny, 
chairman, said Hoiderbank 
planned to launch a pro- 
gramme of American deposi- 
tary receipts in the US next . 
year. I 


Tabacalera, the Spanish 
tobacco group, said it was 
actively looking at several 
overseas markets to identify 
expansion opportunities, Reu- 
ter reports from Madrid. 

“We are looking at the fast- 
est growing markets which 
would be the most interesting 
for us,” said Mr Calixto Rios, 

frriMTunal director, annrwirtcmp 

a 104 per cent improvement 
to group nine-month pre-tax 
profits. 

It set up a joint venture this 
year with ZPT Radom in' 
Poland, where it produces its 
new Winns brand. Cigarette 
consumption to Spain is falling 
by 0.7 -IjO per cent a year, he 
said. Eastern Europe, Latin 
America and Asia, however, 
offer potential far growth. 

The group’s nine-month pre- 
tax profits rose to Ptal3.05bn 


(5106m) from Pta6.4bn to the 
same period last year, as sales 
of premium brands rose due to 
a crackdown on smriggHng. 
Costs fell as a result of lay-offs. 
Group net sales rose to 
Pta585.77bn from Pta4562ha 

Salesof the top of the range 
Philip Morris and Reynolds 
brands, such, as Marlboro and 
Winston, which- Tabacalera 
makes under licence, were par- 
ticularly buoyant. These are 
the types most popular with 
smugglers. 

“The results have evolved 
very much to line with expec- 
tations. We hope the final 
quarter will be similar and we 
are sticking to our original 
forecasts,” Mr Rios said. 

The company expects to cut 
the workforce by 750 people, or 
nearly 9 per cent, by the end of 
the year. 


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21 


INTERNATIONAL COMPANIES AND FINANCE 


Viacom profits 

up seven-fold 

in third quarter 


By Tony Jackson 
in Now York 

Aoj^siUoas helped Viacom, 

~e fast-bowing- us entertazn- 

“fint and media group, to a 
seven-fold rise in earnings a 
share m the third quarter. 

The results included a first- 
time contribution from Para- 

m0l i ct j , Communications. 

acquired for $9.6bn earlier this 
year. 

Hawwer, they have yet to 
reflect Viacom's $8.4bn acquisi- 
tion of Blockbuster, the video 
and music retailer, or its 
£l-lbn sale of Madison Square 
Garden. 

Net earnings were g327_3m 
compared with 5309m. before 
extraordinary items, and earn- 
ings a share were $l_32 against 
18 cents. Sales in the quarter 
were $2.1 bn, up from $5Q8m. 

Mr Frank Biondi, p reside nt, 
said the inclusion of Block- 
buster would improve results 
further. “Our prospects for the 
fully integrated company, 
when all our operations are 
■ reflected and we begin to bene- 
fit from the many cross-divi- 
sional activities now under 
way, are tremendously promis- 
ing,” he said. 

Blockbuster’s sales in the 


nine months to September 
were up 42 per cent to $2.1bn 
and net profits by 26 per cent 
to 5360.2m. 

Earnings from Viacom's tele- 
vision networks were up 
strongly, largely because of 
higher advertising rates and 
subscription revenues. How- 
ever, profits from cable TV fell 
by 33 per cent, after a 12 per 
cent fall in the previous year, 
as a result of government-im- 
posed cuts in cable rates. 

Among the activities 
acquired with Paramount, fea- 
ture films earned $8&n on sales 
of 5431m in the quarter (no 
comparable figures were 
given). 

Viacom said the quarter bad 
been helped by such US 
releases as Naked Gun 3ff/ a and 
Forrest Gump. Television pro- 
gramming earned 518.7m, 
affected by lower syndication 
sales. Paramount Parks earned 
530.3m, affected by lower atten- 
dances and higher costs , 

The publishing division, also 
acquired with Paramount, 
earned 5175m on sales of 
$701m. Results were helped by 
Paramount's own $553m pur- 
chase of Macmillan, part of the 
bankrupt Maxwell empire, at 
the start of the year. 


Sybase acquires 
software group 


By Lotise Kehoe 
in San Aandsco 

Sybase, a leading supplier of 
database software for large 
computer networks, is to 
acqufre Powersoft, a software 
development lords company, in 
a stock swap valued at about 
5782m. 

The' acquisition . Is the latest 
in a series of software industry 
mergers over the past year. 

“This merger will create the 
worldwide leader in cli- 
ent/server software," said Mr 
Mark Hoffinan, Sybase chair- 
man, chief executive and presi- 
dent. Sybase and Powersoft 
were, respectively, market 
leaders in database software 
and- client/server software 
development tools, he said. 

The combination of the two 
companies strengthens our 
expertise, distribution, and 
product solutions to scale from 
the desktop to the enterprise.” 

The acquisition follows 
long-standing collaborative 
marketing arrangements 


between the two companies. 
Sybase estimates that a third 
of its customers use Powersoft 
software development tools. 

Based on figures for the 12 
months ended in September, 
the combined company will 
have annnai revenues of about 
5730m, making it the seventh 
largest software company in 
the world. With a combined 
animal growth rate of 75 per 
cent, it will also he the fastest 
growing of the top 10 software 
companies worldwide. 

Powersoft's share price 
soared on news of the acquisi- 
tion, gaining almost $12 to 
trade at $73% before easing to 
568% in midsesskm trading, up 
from Friday’s dose of $61%. 
Sybase was down $1% at $46%. 

Under the acquisition agree- 
ment. Powersoft shareholders 
will receive L6 Sybase shares 
for each Powersoft share. 

Powersoft, based in Concord, 
Massachusetts, wifi operate as 
an Independent subsidiary of 
Sybase, which is based in Eme- 
ryville, California. 


NEWS DIGEST 

Kmart hit 
by warm 
weather 

By Richard Tomkins 
in New York 

Problems at Kmart, the US 
discount store group, appeared 
to have worsened yesterday 
when it reported a fall in after- 
tax profits from $104m in last 
year’s depressed third quarter 
to 539m this time. 

It was the seventh consecu- 
tive quarter of earnings 
decline. However, Kmart had 
warned last month that profits 
would be down, and the shares 
were little changed. In early 
trading, they were down $*A at 
516. 

Kmart blamed the profits fell 
on unusually warm weather in 
late September and early Octo- 
ber, which affe cted customer 
purchases of autumn clo t hi n g. 

It said sales in the core dis- 
count store division had 
. strengthened in the quarter as 
a whole, with revenues up 2.7 
per cent at stores that had 
been open for more than a 
year. However, the increase 
failed to translate into profits 
growth because sales were 
heavily, weighted .towards 
lower-margin goods. 

Group revenues rose 9 per 
cent to SSiStm. Net income, of 
$mm ib r 1998 excluded $lQm 
of losses; from discontinued 
- operations. On the same basis, 
ea rning s per share fell from 22 
cents to 8 cents. 

SiTif» the end of the quarter, 
Kmart has sdd its 2L5 per cent 
stake . in. rColes Myer, theAusr 
trafian retailer, for 5828m. it 
has also cut its stake in Offt*- 
Max, one of. its specialty retail- 


ing subsidiaries, from more 
than 90 per cent to 25 per cent 

Strong sales growth 
at Toys R Us 

Strong growth in domestic 
sales and a fell in tax charges 
helped Toys R Us, the US toy 
retailer, report a 26 per cent 
increase in net profits in its 
third quarter to October, 
writes Richard Tomkins. 

Net income rose to 547.4m 
from $37.5m, but the compari- 
son was flattered by a one-time 
tax charge of $5m in last year’s 
third quarter. Without the 
charge, profits growth weald 
have bean 12 per cent 

Sales rose 13 per cent to 
$L63hn and operating profits, 
15 per cent to 596m. Earnings 
per share, boosted by the com- 
pany's stock repurchase pro- 
gramme, rose from 13 to 17 
cents, a gain of 31 per cent 

Thomson ahead 18% 

Thomson Corporation bene- 
fited from improvements in 
most of its publishing and 
travel businesses in toe third 
quarter to port an 18 per cent 
rise in earnings, writes Bern- 
ard Simon. 

The New York-based com- 
pany, controlled by Canada's 
Thomson family, lifted net 
gaming s to US$263m, Or 45 
cents a share, from 5223m, or 
39 cents, a year earlier. Sales 
rose to $2.04bn from 5l.86bn. 

Thomson Travel’s operating 
profits climbed 105 per cent to 
5164m. Its UK package-tour 
subsidiary achieved a 16 per 
ce p* rise in bookings last sum- 
mer. Lunn Poly, the UK travel 
agency chain, is estimated to 
have boosted its market share 
by ana percentage point, to 25 

per cent Operating earaipgs at 
the information and publishing 
division climbed 21 per cent 






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Molson 
to dispose 
of retail 
interests 


By Bernard Simon 

in Toronto 

Canada's Molson Companies 
plans to narrow its focus to 
brewing and specialised chem- 
icals, and to dispose of its 
retail hardware business. 

However, toe company also 
warned yesterday that the 
present strike by North Ameri- 
can ice-hockey players and a 
disappointing performance by 
Diversey, its international 
cleaning-services subsidiary, 
would posh earnings for toe 
fiscal year to March 1995 
below last year's C$125.7m 
(US$92. 5m). 

Molson owns the Montreal 
Canadiens, last year's cham- 
pion hockey team, as well as 
the arena where it plays. A 
dispute over players’ salaries 
has led to an indefinite post- 
ponment of the start of this 
year’s season. 

Mr Mickey Cohen, chief 
executive, said yesterday Mol- 
son would leave toe retail sec- 
tor “in an orderly fashion" 
over the next year or two. 

The retail Interests, which 
include three chains of 
do-it-yourself hardware stores 
in Canada, generated 22 per 
cent of Molson 's revenues of 
CS2.97bn last year. 


Bebear keeps Axa on the global track 

The French insurer’s chief is sticking to his international vision, reports Andrew Jack 


I f there is one thing that is 
guaranteed to provoke Mr 
Claude Bdbdar, bead of 
Axa, the insurance group, it Is 
to suggest his company is 
psHpntfnTly French. 

His focus for many years has 
been firmly international. Mr 
B6bear was bom in the Dor- 
dogne and began his career at 
Ancienne Mutuelle, a small 
mutual insurance company in 
Rouen (it became Axa after a 
series of mergers in the 1980s). 
He has since built it into one of 
the largest groups in the world, 
with more than S230bn in 
assets under manag e ment 
Fresh from the Ecole Poly- 
technique in Paris in 1958. he 
was selected as “dauphin" to 
succeed toe father of a class- 
mate as head of Ancienne 
Mutuelle. He qualified as an 
actuary and worked through- 
out the company. 

Before be was 30, he moved 
to Canada for two years to 
work for his company’s affili- 
ate. “I got to know North 
America and 1 understood that 
France is something small in 
the world, " he says. 

“I saw that there is s motHw 
way to think than the French 
way. You realise that the way 
to do business is completely 
different elsewhere. I had to 
adapt to different ways of 
thinking." 

It is a philosophy he has 
been committed to as he 


expanded the group overseas. 
At the top are locally recruited 
management “They know the 
market and are kn ow n in the 
market.” Below them are inter- 
national teams who can bring 
In new ideas and prove more 
innovative than the staff 
working alone. 

Axa wasted no timp expand- 
ing Internationally. Once in 
charge, Mr B6b6ar quickly 
began a merger and acquisi- 
tion programme, first domesti- 
cally and then abroad. *T was 
convinced that one day the 
market would change and 
become global" 

“You could survive then 
with a small business. That is 
less and less true. Companies 
are becoming bigger, and laws 
and liabilities more complex. 
Even small b usinesses are sell- 
ing products outside France. 
The market is becoming more 
concentrated. You have to be 
able to foDow your customer." 

While arguing for diversifica- 
tion to reduce dependency on a 
single economy, he stresses it 
is important for Axa to remain 
strong in France. “We need to 
be among the leaders in a mar- 
ket It is better not to be in too 
many markets but strong in a 
few," he says. 

That said. Mr B6bfear is sure 
toe future for his business lies 
in Asia. This summer be began 
operations in Japan and Axa 
aim hag a representative office 



Claode B6b6an T bad to adapt 
to different ways of thirdting* 

in Beijing. *Tm convinced that 
in 20 or 90 years from now the 
Asian market will be the 
biggest in the world," he 
says. 

“The time to go is when toe 
market is starting, so you can 
grow with the market" 

T he global vision mak es 
it all the more painful 
for him to recall a 
recent visit by a US credit rat- 
ing agency which raised con- 
cerns about Axa's French casu- 
alty business when it 
represents just 18 per cent of 


the group's business. “We are 
seen as a French company,” he 
says. “We want to show that 
we are becoming more and 
more global” 

This helps explain why he is 
keen to have stock market list- 
ings for Axa: first in New York 
next year, and them probably 
in London and Tokyo by 1997 
at the latest “It is important to 
raise money elsewhere," he 
says. “The French market is 
too small, and US pension 
hinds prefer to invest in a com- 
pany quoted there.” 

ms sensitivity to being per- 
ceived as running an essen- 
tially French company is also 
reflected in a $9m-a-year adver- 
tising campaign launched last 
month and aimed at Interna- 
tional decision-makers. 

He acknowledges, however, 
that same foreign investors are 
suspicious of the fact that Axa 
is controlled through a com- 
plex structure. Only 49 per 
cent is publicly held and the 
remainder is with seven insur- 
ance mutuals and several 
cross-shareholdings, which pre- 
vents any risk of takeover. 

“I am very happy with the 
arrangement," he says. “We 
are not in danger, no one can 
buy us. It means we can invest 
even if we know the market is 
a gainst us or nnahin to under- 
stand us. It keeps us out of the 
reach of raiders." 

He does not rule out the pos- 


sibility of relinquishing the 

Co ntrollin g shareholding of the 
mutuals, but is concerned that 
this could lead to a takeover. “I 
see Mr [Michael] Milken is 
back in business in the US." 

As for Axa’s future, there is 
a paradox. Mr Bdbdar has 
become known for developing 
a group stripped of hierarchy, 
with authority delegated and 
formality removed. "We have 
to tell managers they are not 
there to give orders to other 
people but to help them grow." 

O n the other hand, the 
company Is clearly 
domina ted by hhn in 
toe early 1980s, just before it 
became Axa, it was in danger 
of becoming known as “Groupe 
B6b6ar", as one insider puts it 
“His company is not very 
hierarchical," says the director 
of a rival insurer. “But nothing 
gets done without BSbfear’s 
knowledge or specific 
approval" 

That prompts the question of 
what happens when he leaves. 
Now aged 59, he says he plans 
to start “reducing his involve- 
ment" from next year. He says 
no decision has finally been 
taken on his successor but he 
has written a letter of recom- 
mendation in case anything 
ha ppens to Vitm unexpectedly. 

The choice could prove just 
as important as any of Axa’s 
international pim-w 



Awa TE l-E f*H ON V I N TH kUKy < • 4 U « 

by TetaWe* pic »d bee bean approved by Klebmon Benson Limit'd, a member of The Securities and Fuftw. Authority limited, aolohr forth' purpose of Section S7 of the Hn.nd.I Services Ac. WB8. 





22 


m - t’ 



US$480,035,400 Globa! Offering 


Represented by 


36,147244 American Depositary Shares or Equivalent 


USIMINAS 



BN 


ITM-C RKX5R A 

IDES/ n^oojn 


PROGRAMA 
NAOONAi.De _ 
"SESTAUZACAO 


Usinas Siderurgicas 

de Minas Gerais S.A.-USIMINAS 

(Incorporated under the law of the Federative Republic of Brazil) 


Each American Depositary Share Represents 10,000 Preferred Shares 


Global Coordinator of the Combined Offering 

Bear, Stearns & Co. Inc. 


Price US$13.28 Per American Depositary Share 


ns 


United States Offering 


19,880,984 Rule 144A American Depositary Shares 


This portion ni the underwriting is being offered in the United Stales. 


Bear, Stearns & Co. Knc. 


Morgan Stanley & Co. 


t>ui|iu i j | «J 


Salomon Brothers Inc 


Baring Securities Inc. 
Garantia Inc. 


J.P. Morgan Securities Inc. 
La tin vest Securities Inc 


Paribas Capita] Markets 
Factual Capital Corporation 


International Offering 

8,133,130 Regulation S American Depositary Shares 


This portion of the underwriting is being offered outside the United States, Canada and Brazil. 


Bear, Stearns International Limited 

Baring Brothers & Co., Limited 

Paribas Capital Markets 


LaHnvest Securities Limited 
Argentaria Bolsa 


Morgan Stanley & Co. 

Inferruffaiul 


BHF-BANK 


Salomon Brothers International Limited 
Daiwa Europe Limited 


Deutsche Bank 

AUimge<vIkc<uft 


Mediobanca - Banca di Credilo Fmanziario S.pA 


Santander Investment 


Brazil Offering 

81,331,299,616 Preferred Shares 


This portion of the underwriting is being offered in Brazil. 


Banco Bozano, Simonsen SA. 


Banco Icatu SA 


Banco Itau SA. 


Banco ABC Roma SA Banco America do Sul S A Banco da Bahia Investimentos SA 

Banco BBA Creditanstalt SA Corretora BCN SA Valores MobiliArios 

Banco de Desenvolvimento de Minas Gerais SA.-BDMG Banco Bradesco SA Glibank Corretora 
Banco Economico SA Banco Fibra SA Banco lnter-AtJ3ntico SA Banco Matrix S A. 

Banco National S.A. Banco Omega SA Banco Primus SA Unibanco-Uniao de Bancos Brasileiros S A 


Banco Brascan SA. Banco Chase Manhattan SA. Banco finasa de Investimento SA. 

Banco Rnanceiro e Industrial de Investimento SA. Banco Fonte SA. Banco Investor SA. 

Banco Itamarati SA. Banco Multiplic SA. Banco Real de Investimento SA 

Bancorp - Banco Comerrial e de Investimento SA. Banespa SA. Corretora de Cambio e Titulos 

Credireal S A Corretora de Cambio e Valores Gera! do Comerdo SA Corretora de Cambio e Valores Mobiliarios 
Graphus S A Corretora de Cambio e Valores Mobiliarios ING-Guilder Corretora de CSmbio e Titulos SA. 

BB - Distribuidora de Titulos e Valores Mobiliarios 


November 1994 


u 


FINANCIAL TIMES TUESDAY NOVEMBER !, 51994 


INTERNATIONAL COMPANIES AND FINANCE' 



A listing in the time of calamity 


i'" M :.,n »» 


Hanover Re has a lot riding on its partial float, writes Andrew fisher , It’ 


T he first stock market 
listing of a German rein- 
surance company for 33 
years - that of Hanover Re. to 
raise DM530m ($353m) - comes 
at a time of more frequent nat- 
ural disasters, higher premi- 
ums and a more selective 
approach in the industry to 
new business. 

The issue is also one of the 
first with shares in nominal 
DM5 units instead of the usual 
DM50. These are now allowed 
under regulations aimed at 
encouraging private investors 
to buy more shares. Next to 
Switzerland, shares in Ger- 
many are the most expensive 
in Europe. 

With its sister company. 
Eisen und Stahl RQckversi- 
chemng, Hanover Re is Ger- 
many's second largest and the 
world's fifth largest reinsur- 
ance concern. The new issue, 
in which 25 per cent of the 
capital is being sold, is the sev- 
enth largest in Germany since 
1983. 

Hanover Re and the issuing 
consortium, headed by Com- 
merzbank, hope to convince 
German and foreign investors 
that the company's policy of 
forgoing growth in premium 
income in high-risk areas anri 
concentrating on profitability 
will continue to pay off. 

In deference to some ana- 
lysts who thought the issue 
price might be too high for 
many investors, especially for- 
eigners, the voting shares are 
offered at DM75 each for sub- 
scription from November 18 to 
22. Some initial estimates were 
nearer DM90. 

Mr Erich Coenen. a Com- 
merzbank director, said yester- 
day the issue price was attrac- 
tive, both “optically'’ compared 
with the high price of other 
reinsurance groups - Munich 


Hanover Re 

Net eommgs (DM m) 



1990 91 92 S 3 94 95 
Source: Company I— Eat J 


Michael BeischeL- industry 
cannot create money by magic’ 


Re stood at DM2,750 - and 
“analytically": the price-earn- 
ings ratio of 15.S based on 
expected 1995 earnings is well 
under the German sector aver- 
age. 

With Risen und Stahl, which 
is more domestically-oriented 
than Hanover Re r gross 
premium income last year 
was DM5.3bn, a rise of 30 
per cent The underwriting loss 
fell to DMl22m from DM263m 
and net profits shot up by 
nearly 200 per cent to DM125m. 
Grotzp investments totalled 
DMIOJbn. 

Mr Michael Reischei. Han- 
over Re's chief executive, does 
not expect growth to be as 
spectacular this year or next 

“We have grown enormously 
over the past three years,” he 
said. But the group had 
resisted the temptation to 
expand liability levels - r isks 
are simply too high In certain 
areas. “So we expect lower 
growth over the next few 
years. We are cutting back 
where necessary.” says Mr 
ReischeL 

The message is the samp as 
that last week from Munich 
Re, the world’s biggest reinsur- 


ance concern. Because disas- 
ters such as earthquakes, 
floods and typhoons have 
became more frequent, premi- 
ums have escalated. “Assets 
are more highly concentrated,'’ 
said Mr ReischeL “Fifteen 
years ago, Hurricane Andrew 
in Florida would have caused a 
lot less damage." 

The hurricane was the larg- 
est disaster, in terms of 
insured damage, to have bit 
the industry. January’s earth- 
quake near Los Angeles was 
the second worst 


A s an example of risk 
areas where premiums 
have tended to rise 
steeply, Mr Reischei cites 
Japan where Typhoon Mfreflle 
caused heavy damage in 1991. 

“The trend for natural disas- 
ters seems to be on the rise,” 
says Mr ReischeL More damage 
and more insurance payouts 
are definitely to be expected. 

Because the industry spreads 
its exposure internationally, 
thig trend affects premiums La 
all sectors, not just those 
where the risk is severest. 
“Insurance customers, whether 
private or corporate, have to 


: pay mere if they wani cover, - 
says MrRelsdieL “The reinsur- ' 
ance industry can't- create 
money by. magic? . 

In thefivsfyearsto 1993,pre^ 
miumS 'paid for . worldwide 
catastrophe / risks totalled 
nearly W says Mr 'Herbert 
Haas, a director- of Hanover Re. 

. Damage, payouts totalled just 
over JlSbn, but brokerage, 
interest and other.cwte pushed 
- this up to $25bn, leaving the 
' industry, with an overall defi- 
cit : 

Thns.many reinsurers and 
primary insurance companies 
have pulled out or been forced 
out of the reinsurance busi- 
ness. Mr Jtefsc&el puts the fig- 
ure at more than 100 since 
1990. New reinsurance capacity 
is available from Bermuda, but 
Mr Reischei sees this as posi- 
tive - "since new invertors are 
only looking for returns, they 
will hopefully prevent a Tates 
war". • •••'• 

Because if was founded as 
recently as 1966. Ihe says Han- 
over Re has been spared some 
of the worst calamities, such as 
claims an asbestos or pollution 
liability. lit has alrottptbut of 
the overcrowded' London ''and 
Singapore reinsurance mar- 
kets. However, it is raising its 
presence in Aria and Australia, 
where growth is high- - 

The company 'hag no 
tions in mind after buying 
NRG Victory Australia Life 
Reinsurance last year. . 

Hanover Re will use its 
DM230m share of the Issue pro- 
ceeds to lift i£s.4 per cent stake 
in Ris«n n pd stahl, with which 
it does business on a group 
basis, to a 539 per cent major- 
ity holding. The remainder will 
go to its parent, HaftpfUchtver- 
band der Deutschen Industrie 
(HDD, a mutually-owned 
insurer. 




IS' 


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P! 


Czechoslovak Airlines seeks local investor 


By Vincent Boland in Prague 


Czechoslovak Airlines is about 
to enter talks with Czech finan- 
cial institutions that could lead 
to a new shareholder injecting 
fresh capital into the loss- 
making carrier. 

The move follows the with- 
drawal of Air France from an 
investment in CSA in March. 

The new investor is likely to 


acquire part or all of the 49 per 
cent stake in CSA held by the 
Czech National Property Fund, 
the government body that 
owns shares in companies 
being privatised. 

Mr Frantisek Slaby, CSA’s 
executive vice-president for 
fmaire and p lanning , said the 
airline had abandoned its 
search for a single strategic 
partner to replace Air France, 


anff was Re eking an allianra* ' 

with a local investor. 

“There are [Czech] Institu- 
tions able and willing to be 
financial partners of CSA” he 
said. “The partner would be 
from the financial sector but 
not necessarily a bank.” 

Mr Slab} declined to say who 
the potential local investors 
might be. However, one local 
institution likely to be 


approached is Ceska 
PojiSfovna, the largest Czech 
Insurance company, which ha« 
a 45 per cent stake in CSA 
The Consolidation Bank, the 
state-owned “hospital bank” 
that nmiMg PB mnrh of the bad 
debt of newly-privatised Czech 
companies, and which holds 
the 19.1 per cent stake in CSA 
formerly held by Air France, 
could also be considered. 


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» i • 


FINANCIAL TIMES TUESDAY 


NOVEMBER 15 1994 



INTERNATIONAL COMPANIES AND FINANCE 


newsojgest 

Cost-cutting spurs 
Austrian utility 

at pre-tax level 

£5§f Nieder Jste^ich (EVN). a 

profit? t£ r e S r K U “ ity - Pre-tax 

to the yrar SchL08bn ($I00.3m) 

S^n&hEfi* 1 " 8 declined because high 
ramrall enabled local utilities to buy or eerier- 
ate more of their needs f ra rn hySro“ oSc£ 
Revenues from electricity sales were un 19 
per cent to SchT.lbn, while gas 09 

gr ^nt to SchMabo. HeatoglSslS^d 
325 per cent to Sch»7m, due to the takeover# 

f0r toe «“» * Baden and 
othar extraordinary factors. 

to °* surge “ P^tax profits 

to increased volumes, improvements in energy 

efficiency and strict cost management. The 
averap number of full-time employees in the 
y<®[ dropped 5.7 per cent to 2584. 

3* SW iy 1x35 agreed contacts 

with electricity and gas utilities in the Czech 
Republic. Slovakia and Hungary, and has 
declared its interest in acquiring stakes when 
they are privatised. 

Assuming that strong economic growth con- 
tinued in the company's operating territory of 
Lower Austria, the outlook for next year’s 
earnings was “promising”, the company said. 

JR West listing 
decision this week 

Japan’s transport ministry will decide this 
week whether to go ahead with the listing of 
West Japan Railway (JR West) as originally 
planned, Renter reports from Tokyo. 

The government is considering whether to 
list JR West on Japan’s stock exchanges before 
the end of the current fiscal year next Marrh 
transport vice-minister Mr Michihiko Matsuo 
was quoted by a ministry spokesman as telling 
a news conference. 

“We are in a difficult situation, but we will 
make a decision soon, probably by the end of 
this week,” Mr Matsuo was quoted as saying. 

JR West applied in August to be listed on six 
Japanese exchanges, including the Tokyo 
Stock Exchange and Osaka Securities 
Exchange. 

Most stock market participants expect the 
JR West listing to be postponed following the 
unsuccessful October 27 listing of another gov- 
ernment entity. Japan Tobacco. 

Japan Tobacco was offered to the public at 
Y1.44m, but feiled to dose above its initial 
offering price on its first trading day. It has 
continued falling since then and ended at 
Y961.000 on Monday. 

Mxnorco wins battle 
for Lisheen project 

A hitter battle for control of the Lisheen 
project in County Tipperary, Ireland, the sec- 
ond-largest zinc-lead deposit in Europe, has 
ended in victory for Ifinorco. the overseas 
investment arm of the Anglo American-De 
Beers group of South Africa, and Ivemia West, 
a junior Irish company, writes 
Kenneth Gooding. 

Minarco has paid Ivemia $77m to acquire 50 
per cent and management control of Li s h een. 
Ivemia immediately beforehand paid $77m 
cash to Chevron to buy the DS oil group’s 525 
per cpnt s take . Ivemia says it thereby has 
lifted its share of the Lisheen project by 25 per 


cent, to 50 per cent, at no net cost to itself. 

The struggle for Lisheen developed because 
Chevron in 1992 agreed to sell Its controlling 
stake to Lac Minerals of Canada. Ivemia 
Claimed to have pre-emptive rights over Chev- 
ron's shareholding. 

But this claim had to be tested in the Irish 
High Court which in September ruled in Iver- 
nia’s favour. 

Lisheen is expected to have a life of 13 to 15 
years producing an annual 155,000 tonnes of 
zinc, at a relatively low cash cost of 30 cents a 
lb. Capital expenditure is estimated at 
US$184m and start-up is scheduled for early 
1397. 

Minorco owns 24.5 per cent of Ivemia. as 
does Outokumpu, the Finnish resources group. 

News Corp ‘lifts stake 9 
in John Fairfax 


25 ■ ■ ^.a. 

1994 

Source; FT Graphte 


Mr Rupert Murdoch’s 
John Fairfax global media group, 

has lifted its stake in 
Share pries (AS) ‘ John Fairfax Holdings 

35 to about 3 per cent, 

1 according to an article 

1 in the Fairfax-owned 

JflL Australian Financial 

3_o j ■ Review newspaper, 

■ M .a Renter reports from 

u in I Sydney. The Financial 

tRi U Review said News Corp 

. . , , *■ , F*. was understood to 

" ."v have bought 7.3m 

* __ shares, representing 

Source: FT &aphto about 1 per cent Of 

Fairfax, earlier this month for A$23m 
(US$175m). 

. In July, News Corp revealed it had bought a 
stake In Australia’s oldest newspaper pub- 
lisher. The total stake is below the 5 per cent 
substantial shareholder notice that has to be 
lodged with the Australian Stock Exchange. 

Fairfax is 15 per cent owned by Mr Kerry 
Packer's P ublishing and Broadcasting and 25 
per cent by Mr Conrad Black's The Telegraph 
group in the UK. 

Growth at Portuguese 
telecoms operators 

Companhia Portuguesa Radio Marconi, Portu- 
gal's intercontinental telecommunications 
operator, posted a 522 per cent increase In net 
profits to Es4.72bn ($37 .2m) for the first nine 
months of 1994 compared with the same period 
last year, writes Peter Wise in Lisbon. 

Marconi, which is 51 per cent state-owned, 
attributed the rise to the beneficial effects of 
tariff reductions, cost-cutting and returns on 
international investments. 

Meanwhile, Portugal Telecom (PT), the 
state-owned global operator formed from a 
merger of three companies in July, reported a 
a first- half net profit of Es8J.bn on a turnover 
of Esl555bn. 

Marconi is to be integrated into PT by the 
end of the year, before the partial privation of 
the new group in 1995. The government has 
not yet made clear how Marconi’s private 
shareholders, mainly US and UK institutional 
investors, are to be compensated. 

Options at Warburg 

Liffe has announced that S.G. Warburg has 
been approved to make a market in equity 
options, bringing to 11 the total number of 
market makers at the exchange, writes Rich- 
ard Lapper in London. 

Warburg will today begin making a market 
in 38 equity options, ft will operate as an 
“assigned market maker”, in which it is com- 
mitted to a continual presence in the pit for 
the purpose of making and updating two-way 
prices in 16 equity options. 




Pakistan 

Privatization of Kot Addu 
1,600 MW Thermal Power Station 
Water and Power Development Authority 

The Government of Pakistan announces the commencement of a 
competitive process to select an eligible investor or consortium to acquire a 
26% equity interest and management control in the Kot Addu Thermal Power 
Station. Kot Addu is a multi-faceted facility which will have a total capacity of 
approximately 1,600 MW upon completion of additional capacity scheduled 
for mid- 1995. 

Prospective investors are asked to express their interest in order to 
receive the Request for Qualification which will be available from November 
20, 1994. Upon qualification, bidding instructions and access to detailed due 
diligence materials will be provided. Qualification will be based principally 
on relevant experience and credentials in operating similar facilities in addition 
to financial strength. 

The Government of Pakistan has engaged CS First Boston to act as 
its financial advisor in all aspects of the selection process. BMA Capital 
Management is assisting CS First Boston in this effort. Expressions of interest 
should be submitted to Mr. James Bartlett, CS First Boston, at the address 
below. Enquiries may be directed to any of the following representatives: 


New York 

Mr. James Bartlett 
GS First Boston Corporation 
park Avenue Plaza 
55 East 52nd Street 
New York, NY 10055 
United States of America 
Tel: 212-9094841 
Fax: 212-355-4937 


New York 

Mr. Hugh Goilan 
CS Fust Boston Corporation 
Park Avenue Plaza 
55 East 52nd Street 
New York. NY 10055 
United States of America 
Tel: 212-90^4753 • 

Fax: 212-9094937 


Karachi 

Mr. Moazzam Malik 

BMA Capital Management Lid. 
801 Uni Tower 
1.1. Cburrdrigar Road 
Karachi, 

Pakistan 

Tel: 9221-2434)532/3 
Fax: 9221-2434X748 


Fujitsu and Sharp in multimedia alliance 


By MlcMyo Nakamoto 
in Tokyo and Alan Cana 
In London 

Fujitsu, Japan’s largest 
manufacturer of computers, 
and Sharp, the consumer elec- 
tronics maker, yesterday 
announced an alliance to 
develop new products based 
on mobile communications, 
Information processing and 

imaging . 

The move comes as Japan’s 
electronics industry is begin- 
ning to position itself for the 
emerging market for products 


which, transcend the tradi- 
tional boundaries of comput- 
ing, telecommunications and 
consumer electronics. 

The so-called multimedia 
market is expected to grow 
rapidly over the next few 
years, providing new product 
possibilities for consumer elec- 
tronics companies finding it 
difficult to sustain a flow of 
new ideas and for computer 
manufacturers hit by falling 
profit margins. 

The first development by 
Fujitsu and Sharp will be a 
mobile telecommunications 


system allowing users of “Zau- 
rus", a hand-held computer 
made by Sharp, to tap Into, and 
extract information from, a 
data network operated by 
Fujitsu. 

The two companies said they 
would be working on ways to 
ensure their products could be 
connected: “We will work 
together to develop advanced 
technologies in devices and 
interfaces that can become 
industry standards.” 

The alliance brings together 
two companies with recognised 
strengths in areas expected to 


be crucial to the development 
of advanced multimedia prod- 
ucts. Fujitsu Is a leader is 
information processing and 
communications systems tech- 
nologies. 

Sharp, for its part, has 
become dominant in liquid 
crystal display panels, and has 
experience in new personal 
information tools software 
through its agreement with 
Apple to manufacture the US 
company’s personal digital 

ncaiafemt 

Fujitsu could learn from 
Sharp's speed of development 


and its ability to bring out hit 
products, said Mr Mtitio Oht- 
sufci, Fujitsu vice-president. 
Fujitsu has been attempting to 
move Increasingly into the con- 
sumer market with the launch 
last year of a multimedia 
machine which confers the 
capabilities of a personal com- 
puter on an ordinary TV. 

Fujitsu already provides 
Sharp with semiconductors 
while Sharp supplies Fujitsu 
with liquid crystal display pan- 
els. However, the two compa- 
nies have no plans to co-oper- 
ate in these fields. 


Barlow improves on forecasts 
by boosting net profits 47.8% 


Air NZ expects to top 
37% gain in earnings 


By Mark Suzman 
In Johannesburg 

Barlow Limited, the rump of 
South African conglomerate 
Barlow Rand, which was 
unbundled last year, has 
improved on initial forecasts 
by reporting after-tax profit of 
R412.4m ($U7m) for the year 
ended September, a rise of 475 
per cent from the pro forma 
figures of R279m for the previ- 
ous year. 

In spite of the sale of several 
businesses during tbe year, 
especially in its troubled off- 
shore subsidiary, UK-based 
J. Bibby & Sons, turnover rose 
to R12.87bn, up from R11.76bn 
previously. 

Operating profit rose by 72.6 
per cent to R405.2m from 
R234.8m while interest paid 
dropped to R178.3m from 
R230.8UL 

The group's balance sheet 
re mains sound, with the debt / 


equity ratio at a comfortable 
13.4 per cent and cash in hand 
of some R707m. 

Barlow's successful launch 
of a S75m international bond 
issue also testified to the com- 
pany’s growing international 
profile. 

Mr Warren Clewlow. chair- 
man, said the results reflected 
a stronger mange ment focus in 
the reconstituted group. He 
noted that Barlow had also 
benefited from the upturn in 
the domestic trading environ- 
ment during the second half of 
the year following tbe South 
African elections in ApriL 

The largest contributor to 
earnings was Pretoria Portland 
Cement, which benefited from 
increased demand for cement 
and lime products. 

Both PPC and construction 
subsidiary Federated-Blaikie. 
which also improved in the 
second half, are expected to 
achieve higher volumes over 


the coming year as a result of 
the government’s large-scale, 
housing programme. 

At the same time, increased 

ripmanri fry pa r fh m oving equip- 
ment helped Barlows Equip- 
ment to boost earnings while 
paint division Plascon also per- 
formed satisfactorily. But Bar- 
lows Consumer Electric Prod- 
ucts continued to suffer from a 
depressed consumer appliance 
market, and J. Bibby 's 
improved bottom line came 
only after a major restructur- 
ing, involving the sale of non- 
core assets to offset heavy 
losses in operations in Spain 
and PortugaL 

Mr Clewlow predicted that 
the coming year would see a 
continued improvement in 
group earnings given the 
reduction in overseas borrow- 
ings and the group's appoint- 
ment as Caterpillar dealer 
in four additional African 
countries. 


By Terry Hail m Wellington 

Air New Zealand expects 
profits for the current year to 
exceed comfortably the 37 per 
cent rise in tax-paid earnings 
to NZ$190m (US$1 18m) 

achieved in the 12 months to 
last June, Mr Bob Matthew, 
chairman, told yesterday's 
annual meeting in Wellington. 

He said the company expec- 
ted to expand its international 
passenger capacity by more 
than 16 per emit this financial 
year. This would primarily 
stem from the introduction of 
new non-stop services between 
Los Angeles and Sydney en 
route to New Zealand, and new 
links from Brisbane to tbe new 
Japanese airport, Kansai. 

Mr Matthew criticised Can- 
berra for this month’s decision 
to suspend unilaterally the sin- 
gle market aviation agreement 
with New Zealand, one week 
before Air New 7-aalanH was 
due to have started domestic 


services within Australia. 

He said Australian travellers 
should not “buy their govern- 
ment’s outrageous proposition" 
that either Air New Zealand or 
its government was to blame 
for the collapse of the agree- 
ment, which would have 
brought downward pressures 
an Australian air feres. 

Mr Matthew added that both 
airline and government had 
maintained an unprovocative 
stance “throughout this 
remarkable sequence of 
events”, in spite of Australian 
initiatives to angle the compet- 
itive environment in favour of 
Ansett and Qautas, the Austra- 
lian carriers. 

“Matters must be put right if 
Air New Zealand is not to find 
itself commercially disadvan- 
taged,” he said. “We hope we 
will not need to seek recourse 
by way of the various remedies 
available to us under the origi- 
nal agreement to which both 
governments are signatories.” 


PHILIPPINES 


EH Corporation 


THAILAND 


SFR 30,000,000 


J'*% CVummMc Nuic* Jut MOO 


Br fan ThwW 


AJphuttx Electronics 
Public Company Limited 

USS4S.OOO.COO 

4% Convert hie M*ct 4* IW 


BdmDaiM. 


Rotimon Department Score 
Public Company Limited 

US $40,000,000 

4VA Cowcmblr BuoJ* <h> 2004* 


B a ri u na That Iiho utVum I P4jC 


TA 1 WAN 


KOREA 


Taiwan Kolm Co., Ltd. 

Yen 44XO.COOJ.XX5' 


O nwvnHe fi ir» J*r 2000 


GoldStar Co., Lt J. 

1.496324 Global 
Depositary Shares 

Rule 144A (Uirac Jfcnn** 


President Enterprises Cotp. 

US ilQO.OOOfiOO 

Nil Ajc 2001 

Iran ihamct 

Ton Yi Industrial Corp.* 


Chuniex 

Elect runic Co., Ltd. 

SFP 60 . 000.000 

2*^ CWrotuMb ikv 20CW 


IMeenlnmiAti 


A D 1 Corporation 
SFP nO . 000 POO 




Leading the way 
to r 

A s i an 
corpora re 
issuers 
in the 
o lobal 

e q a i t y c a p i r a 1 
markers. 


Youngooe Corporation 
SFR 1 5,000,000 


1% ConwnWc M -e» Juc IW 


CITC Frontier Fund PLC 
US$59,400,000 

Shun, Vmnwt 
jnl 

AmliigRikNiinil. 1*0 


B ne ifctu Thm Umim i iml PLC 


SsangYong Oil Refining 
Company Limited 

US $ 1 504X0,000 

Qnvcrubb Dunfa iluc 2ffl* 


B—Imw HiI m — I — IHjC 


HONG KONG 


G.M. Pfaff AG 
SFR 85.000000 

iVrLlidvrfilble N.rio Jus 2000 


Banker* Trun AC 

Banka, -&WI GmbH 


S. Mc&a International 
Holdings Limited 

LIS $47,500X00 

2Y% CflwnlUr Naan Jut M02* 


-mclibinl U s 1 44 A i4m.rjm.-ni cup*, llry 


Lai Fung Overseas 
Finance Limited 
USSISOfiOOfiOO 

CcnamMr Lkoarwccd BuoJ* 
UniRfliMr jhn Sc IPO Mo UuTm 
i4 Lai Fung HoUinc* LttnUrJ' 


Jana* Co-toad Manager 


These leading Asian companies selected Bankers Trust as a lead manager when raising equity- 
related capital in the global markets. Bankers Trust’s innovative structuring and distribution 
capabilities, and commitment to secondary market liquidity, resulted in these and other 
equity offerings tor clients in the emerging markets of Asia, Latin America and Europe. 


.lCO- 



I CS First Boston 


CS Rm Boston Limited- * member rt SFA. hu approved dim advcHBcmml 
lOtely l» l pufpote* of Sect** 57 of liw Financial Service* Am IWh. 


□BankersTrust 

I k A l> FROM K f R £ M tl T H. 












24 


FINANCIAL TIMES TUESDAY NOyEMB^ t5rJ994; 


INTERNATIONAL COMPANIES AND FINANCE 


raftaxjrdurt? 

Noranber 1994 


2,800,000 Shares 


The Foreign & Colonial 
Fmerg ing Middle East Fund, Inc. 


Boral wins 
go-ahead for 
executive 
share plan 


By Nikki TaK ki Sydney 


Common Stock 


The NYSE symbol UEME 


■iM * Oilnntal Emerging Markets limited— Investment Adrisor 
iniy ma rioffi it nuance Coqjoratioa— Struauring Advisor 
Mitchell Hutchins Asset Mana g emen t Inc.— Administrator 


nil portion qflbe offtring tan offitrrd outside On IMM Stotts by the unden&nA 

900,000 Shares 

Nomura International PataeWebber International 


Robert Fleming A Co. limited 
UBS limbed 


SAWWwig Securities 


ms portion aftbtogBri^maff^totbclMt&Sttebyttoumlcnigned 

1,400,000 Shares 

Nomura Securities International, Inc. 

PaineWebber Incorporated 

JW Charles Securities, lac. 

Afa. Brown & Soa» Dflloo, Read &Col Inc. AX* Edwards ASoos, Inc. Ke mp crSc agfrlcs . fry . 
OppenbebnerA Cosine. SatomoaBrotbetsInc S.G.Wart*urgACo. Inc. 

Advest, luc. ArntaoMnadSLBleldxroedeiilnc. MbniBUf ft Company 


Advest, Inc. ArnhotdxndS. Bleicnroedei,Ioc. william hi ir « company 

J.CBmBbfdftCo. The Chicago Corponnion Cowcuft Company Pad n Boswo rth 
hbneMdftCaloc. HgtADNoyCoipnaion Hrst of MJcbl|^ Corporation 

FBxmnSdt Gnmud A Col, Incorporated JaxmryMonqjomay Scott Inc 


fl manSd t Gnmod A Col, Incorporated Jaaney Montgomery Scott Inc 

ladenburg. Thdatami AC olIzic. CJ. la manx/Pemc hc Bank IcggHuoaWpdffidter 
Mabon Securities Corp. McPc mld A Company Morgan Keegan A Company Inc 

NtedbniaCompuijtlac Piper Jsrffiay Inc. Principal Financial Securities, Inc 

RnacfavFknxRcfiiu^Iac Hiymondjames* Associates^ Inc 

The RobtaKja- Humphrey Company Inc Roney* Co. Stephens Inc, 

Sdfcl, Nic olaiM & Company Sutro A Co. Incorporated Tbc fcer Anth ony 

niwp a Vf n rf tU Wheal Heat B u tche r anger 

George K. Baum & Company Branch, Cabell ami Company Cadton A Associates, Inc 

CroweU/Wecdon&Ca. Ferri s, Baker Wans Hrst Colonial Securities Group Inc. 

Hanlfcn, tmhnff lnf. J. J_ B. Hilliard, W I_ Lyons, Inc. Howe Barnes Investment*, Inc 

i« wmmi»j iAhmi i tm. jofanato n. Lem on A Co. John G- Ktrirard^gd Company 

McGinn, Smith A Cosine. Meslrow Financial, Inc The Otrio Company 

Pa riccr/H tim er Pennsylvania Merchant Group Ltd Rodman A Benshax* Inc 

Sand* Brothers A Coated. neSddttCompnla Murid Slebert A Cosine 

SotmdVlew Hnanchd Group, Inc Soatfawest Securities, Inc SgeocoJ^t 


Sands Brother* A Co^ Ltd. 


SotmdVXew Hnanchd Group, Inc 


Southwest Securities, Inc 


ms portion of the offering nos bought by 

INTERNATIONAL FINANCE CORPORATION 


500,000 Shares 


EVN is one of the leading energy utilities in 


Austria - a country which is warming up for 


entry to the European Union by continuing 


to outperform the European average for 


economic growth. 


EVN's core business is the production and 


supply of electricity, gas and heating in lower 


Austria - the country's largest and most 


populous Federal State. 


Beyond our own market, of course, lie the 


countries of the "new" Europe: the Czech 


Republic, Slovakia and Hungary. In the last 


year, we have turned our proximity to these 


countries into real links for the future by 


entering into co-operation agreements with 


several key regional energy companies in 


advance of their planned privatisation 


programmes. 


Not content with these opportunities for 


growth, we are also continuing our 


diversification strategy by developing new 


businesses to capitalise on the specialised 


know-how and regional infrastructure of our 


core energy business. These indude a joint 


waste incineration venture with the 


government of lower Austria, and a plan to 


utilise our high voltage network's glass fibre 


earth cable for telecommunications purposes. 


As you can see, our 1994 results are positive. 


Our future prospects are even more so. 


gVNBwgtajMqorm 

Medwfimmidi 

AMangmallKhaft 


EWN 


FOR MORE INFORMATION, CONTACT DR GEORG MALE. EVN INVESTOR RELATIONS. A-2344 MARIA EN2ERS00RF. AUSTRIA. TELEPHONE: + 43 2336 200 272* FAX * 43 2236 200 2600. 



Telco ahead at Rs562.8m 
on record sales and output 


By Shiraz Sktftva 
in New Delhi 


Shareholders in Boral. the 
large Australian building prod- 
ucts company, yesterday 
forced a poll on two elements 
of its controversial executive 
share plan. 

Although both proposals 
were subsequently approved 
by large margins at the annual 
meeting in Sydney, the share- 
holder action demonstrated 
simmering unease among snmt» 
investors at the proliferation of 
more generous forms of execu- 
tive remuneration. 

Shareholders have expressed 
fears that the country could be 
about to adopt US-style reward 
schemes, while analysts have 
suggested that - at least in 
some instances - the condi- 
tions designed to give execu- 
tives incentives through share- 
based remuneration packages 
are being made too easy. 

The first proposal repre- 
sented an amendment to Bor- 
al's executive share plan, 
allowing the company to pay 
up to l per cent of operating 
profit before abnormals and 
tax into a trust, which could be 
used to acquire shares on 
behalf of executives. 

The second concerned the 
purchase and allocation of 
shares worth A$225,863 
(US$167,306) to Mr Tony Berg, 
who became managing director 
of Boral in January. Mr Berg i 
was formerly managing direc- 
tor of Macquarie Bank, the 
Sydney-based investment 
bank. 

Mr Berg's service agreement 
states that performance incen- 
tives and certain entitlement 
in lieu of superannuation are 
paid to the executive share 
plan, and used to buy Boral 
shares. The permission was 
sought in relation to incen- 
tives/superannuation earned in 
the period to end-June. 

Opponents of the motions 
outvoted supporters at the 
meeting itself. But both pro- 
posals were carried in a pod, 
with more than 95 per cent of 
votes In favour. 

At the meeting, shareholders 
were told that first-quarter 
results showed “a healthy 
increase" in both sales and 
profits, and that the full year 
should he “a good one”. 


Tata Engineering and 
Locomotive Company (Telco), 
India’s leading commercial 
vehicle maker, saw operating 
profit in the six months to end- 
September almost double to 
Rs2.24bn f$71.3m) from 
Rsl.l2bn a year earlier. 

Net profit for the period 
advanced to Rs562.8m from 
RS3012XL 

Telco said market conditions 
during the first half of the year 
had improved significantly 
since last year. 

The company said it had 
achieved record levels of pro- 
duction and sales. 

The sustained recovery in 
demand for the automotive sec- 
tor had pushed up vehicle sales 


to 53,391 units from 37,507 
vehicles last year. 

Vehicle production increased 
to 57,313 vehicles from 25,197 in 
the same period last year. 

Cheaper borrowing should 
also have a positive impact on 
the company's performance for 
the rest of the year. 

Meanwhile. Tata Iron and 
Steel, the flagship company of 
the Bombay-based Tata group, 
said operating profit for the 
same period rose by 40 pm- cent 

to Rs3-06bn. 

This was achieved as a result 
of a richer product mix and 
improved control over costs. 
Net p ro fi ts of Rsrasiw com- 
pared with Ra46J&m in the cor- 
responding period last year. 

Analysts said that although 
the increase was shar p it was 
below expectations. Domestic 


demand fin- steel was buoyant, 
reflecting an increase in 
domestic sales of 33 per cent, 
to 758^)00 tonnes. 

Exports almost halved to 
155,000 tonnes from 308,000 
tonnes, forcing Tfsco to con- 
centrate on toe home market, 
anri raising its domestic share 
to 14 per cent from 11 per cent 
last year. 

Overall production increased 
by 9 per emit to 1.08m tonnes 
from 994,600 tonnes last year. 

The company said results 
would improve later this 
year with the near completion 
of its modernisation pro- 
gramme. 

TnWai tosses in the compa- 
ny's cement unit, which 
started operations in March, 
had an adverse effect on the 
half-year results. 


Japanese 
developers 
hit by lower 
rental rates 


By Entiko Terazonok) Tokyo 


Suzuki Motor lifts 
forecast to Y23.5bn 


Thai bank posts 
sharp advance 
at nine months 


Suzuki Motor, Japan’s largest 
producer of minicars and the 
world's third- largest manufac- 
turer of motorcycles, expects 
parent operating profit to 
reach Y23.5bn ($24. lm) in the 
year to March 1995, up from its 
May forecast of Y2l50bn, the 
company's vice-president, 
Mr Yoshio Saito, said yester- 
day, Reuter reports from 
Tokyo. 

Operating profit totalled 
Y2L84bn in 1993-94 

The revision was based on 
higher-than-expected sales 
of the minivan-type 660cc 
Wagon R, and cost-cutting 
efforts in the first six months 
to September. 

Suzuki, which is 3-4 per cent 
owned by US carmaker Gen- 


eral Motors, aTiTirnmnari first- 
half parent operating profit of 
Y14-76bn, up 2L8 per cent from 
a year earlier. 

The six-month operating 
profit was a record for Suzuki, 
surpa ssing the previous high of 
Y13.79bn in the first half of 
1992-93. 

However, projected full-year 
operating profit would not 
match the record of Y24JSlbn 
in 1990-91, Mr Saito said. 

Suzuki revised its forecast 
for 1994-95 depredation costs to 
Y47bn from a May prediction 
of Y45-30bn, compared with 
YfiLSOtm in 199394 

It left its forecast of capital 
investment unchanged from a 
May forecast of YSOfan. against 
Y3420ba a year earlier. 


Thailand’s Bangkok Bank of 
Commerce, a medium-sized 
commercial bank, yesterday 
announced that net profit for 
the first nine mouths had. 
jumped 144 per cent to 
Bt3S4.1m ($15. 4m), AP-DJ 
reports from Ban g kok. 

At toe same stage last year 
the bank had net profit of 
Btl57.7m. 

Bamings per share advanced 
106 per cent to BUL03 from 
BtOSO. 

0 Thai Insurance, am affiliate 
of Thai Dam Bank, said its 
net profit fell 5J. per cod to 
Btio.lm in the third quarter 
from BtlOJfcn a year earlier. | 

Earnings per share were 4.9 
per cent lower at Bt&52, com- 
pared with Bt2.65 last year. 


property, devel- 
opers were, hit 
by. declining 
office, rental 
Property - ratesr arid a fell 
— . - in . interest 

Inmirw In the-flriit six months ' 

of toe fiscal year. • 

Mitsui Fudosan saw a 50 per; 
r«nt plunge in recurring prof- 
its before extraordinary 
items and tax - to Y4.7bn 
($4&2m) due to a sharp narrow- 
< tog of profit m a rg i n* became 
of a cut in office rents and a 
rise in expenses stemming 
from sales of luxury houses. 

Sales fell 0.3 per cent to 
Y342-5bn and after-tax profits 
dropped 43.6 per cent' to 
Y4Jfan. Product related costs 
were equivalent to 87,7 per 
bent of income. ! - . 

In the second half, the com- 
pany expects to post extraordi- 
nary losses of YSObn related to 
aid to its finance' subsidiary, 
but it added that the losses 
would be covered by profits 

fl twn ahareihnlding a. 

For the frill year to March, 
recurring profits are expected 
to fall 2&8 per cent to Y12bu on 
an Bi pm ran* ifadfap fa 
to Y730tm. 

-: Mitsubishi Estate said 
interim recurring profits fell 
4.3 per cent to Y294bn while 
sales rose 12JJ per cent to 
Y2295hn due to its new build- 
ings in Tokyo and Y okohama 
Aftertax profits rose 1&3 per 
cent to Y215bn. 

For the frill year to March, 
the company expects recurring 
profits to decline 2&2 per cent 
to Y35bn cm a 4A per cent fall 
to sales to Y420bn. 


Sony Music wary after first-half drop 


Sony Music Entertainment 
(Japan) is cautious on future 
earnings after it posted a drop 
in both parent and group earn- 
ings in the first half. Renter 
reports from Tokyo. 

Foreign exchange market 
instability and cuts In capital 
investment in Japan were can- 
celling out rises in consumer 
spending and a bottoming-out 


in corporate ftwrnfa gu, it said. 

In the six mouths to Septem- 
ber, Sony Music, which is 71 
per cent owned by the con- 
sumer electronics grotto Sony 
Corp, reported a 5 per cent fell 
in parent recurring profits - 
before extraordinary items and 
tax - to Y9.41hn ($96.5m). 

Group recurring profits in 
the six months were Y10.Elhn, 


down 16.4 per cent But for the 
full year to March 1995, Sony 
Music forecast parent recur- 
ring profits of Y20^bn against 
Y19.84bn a year earlier, and 
group recurring profits of 
Y23hn against Y253bn 
For the parent company, new 
releases tor top Japanese and 
overseas artists is likely to 
boost earnings. But the Mgher- 


than-expected cost of setting 
up two record companies this 
year and falling sales at a 
sports goods subsidiary will hit 
group earnings. 

A decline in sales of Japa- 
nese- language records and 
earning s from firumrial invest- 
ments as well as a rise in the 
company's tax bQl hurt first- 
half earnings. 



AT 


INDUSTRIVARDEN 


W 


Quarterly Report January 1 - September 30, 1994 


■ Consolidated earnings after financial 
items, but before gains on sales of stocks 
and other nonrecurring items, totaled 
SEK615 M (206). 


Net asset value per share and CPN 


■ Including nonrecurring gains, totaling 
SEK 713 M, earnings amounted to 
SEK 1,328 M (597). 


■ The value of the portfolio of listed so — H — H — 

stocks on September 30, 1994, was n | | | 

SEK 9.2 billion. Adjusted for purchases 1900 1901 iraa ibw novb, 

and sales, the value of the portfolio has 1SS4 

decreased by 8 percent since the 

beginning of the year. The General Index has risen by 1 percent. 


Market value of listed stock portfolio 
and hidden reserves 


■ Net asset value as per November 9, 
1994, has been calculated at SEK 305 
per share and CPN. 


SEKM B Book value E3 Hidden reserves 



■ The full-year earings forecast for 1994, 
calculated after financial items but be- 
fore sales of stocks and other nonrecur- 
ring items, has been raised to approxi- 
mately SEK 750 M. Nonrecurring gains 
as per September 30 amounted to 
SEK 713 M. 


1890 1991 1992 1993 ScptW, 

1994 


AB IndustrivSrden 

Box 5403, S-l 14 84 Stockholm 

Phone +46 8 666 64 00, Fax +46 8 661 46 28 


Of* 1 

iV* 




• /.■ >f r r' 






Financial times 


Tuesday November is 1994 


25 


All of these securities having been sold, this announcement appears as a matter of record only. 


November 1994 


35,700,000 Shares 


OfficeMax 



Common Shares 


6,500,000 Shares 

• The above shares were offered outside the United States and Canada by the undersigned. 


Donaldson, Lufkin & Jenrette 

Securities Corporation 


Morgan Stanley & Co. 

International 


William Blair & Company 


Dean Witter International Ltd. 


McDonald & Company 

Securities, Inc 


Barclays de Zoete Wedd Limited 
Internationale Nederlanden Bank N.V. 


Cazenove & Co. 

James Capel & Co. 


Paribas Capital Markets 


N M Rothschild and Smith New Court 


Credit Lyonnais Securities Deutsche Bank Indosuez Capital 

AktiengeseUsctuft 

Kleinwort Benson Securities Lazard Brothers & Co., Limited 

Societe Generate Sumitomo Finance International Pic UBS Limited 


29,200,000 Shares 

The above shares were offered in the United States and Canada by the undersigned. 


Donaldson, Lufkin & Jenrette 

Securities Corporation 


Morgan Stanley & Co 

Incorporated 


William Blair & Company 


Dean Witter Reynolds Inc. 


McDonald & Company 

Securities, Inc. 


Bear, Steams & Co. Inc. 

Lazard Freres & Co. 

Prudential Securities Incorporated 
UBS Securities Inc. 

Advest, Inc. 

Crowell, Weedon & Co. 

First Southwest Company 


A.G. Edwards & Sons, Inc 


Alex. Brown & Sons 

Incorporated 

Lehman Brothers Montgomezy Securities J.P. Morgan Securities Inc 


Hambrecht & Quist 

Incorporated 


Robertson, Stephens & Company 


Goldman, Sachs & Co. 

Oppenheimer & Co., Inc. Paine Webber Incorporated 

Salomon Brothers Inc Smith Barney Inc. 

Sanford C. Bernstein & Co., Inc. 


SBCI Swiss Bank Corporation 

Investment banking 

C.J. Lawrence/Deutsche Bank 

Securities Corporation 


Werfheim Schroder & Co. 

Incorporated 

Amhold and S. Bleichroeder, Inc. Robert W. Baird & Co. J. C. Bradford & Co. The Chicago Corporation Cowen & Company 

incorporated 

Equitable Securities Corporation 


Dain Bosworth 

Incorporated 

Furman Selz Incorporated 


First Albany Corporation 


Johnston, Lemon & Co. 

1 Incorporated 

Lege Mason Wood Walker 

w Incorporated 


Edward D. Jones & Co. 
Moran & Associates, Inc. 

Securities Brokerage 


Gruntal & Co., Incorporated 
Josephthal Lyon & Ross 

Incorporated 


Interstate/Johnson Lane 

Corporation 


First of Michigan Corporation 
Janney Montgomery Scott Inc 
Kemper Securities, Inc. Ladenburg, Thalmann & Co. Inc. 

Morgan Keegan & Company, Inc. Needham & Company, Inc. Neuberger & Berman 
The Ohio Company Piper Jaffray Inc. Principal Financial Securities, Inc. Ragen MacKenzie Rauscher Pierce Refsnes, Inc 

Raymond James & Associates, Inc The Robinson-Humphrey Company, Inc. Roney & Co. Scott & Stringfellow, Inc Stephens Inc. 

Sutro & Co. Incorporated Tucker Anthony Unterberg Harris Wheat First Butcher Singer 

Adams, Harkness & Hill, Inc. Baron Capital, Inc. Brean Murray, Foster Securities Inc. Fahnestock & Co. Inc. Luther, Smith and Small 

Mahan Securities Corp . Parkex/Hunter Pennsylvania Merchant Group Ltd Piyor, McClendon, Counts & Co., Inc. The Seidler Companies 

Incorporated Incorporated 

Sturdivant & Co., Inc. Williams MacKay Jordan & Co., Inc 


26 


.-r *’ 


INTERNATIONAL CAPITAL MARKETS 


Treasuries edge higher ahead of Fed meeting 


By Lfea Bransten In New York 
and Martin Brfcein London 

US Treasury prices edged 
higher yesterday morning fol- 
lowing a rising dollar, but the 
rallying currency foiled to 
spark a large increase in bond 
prices as traders waited for 
news of interest rate policy to 
emerge from today's meeting 
of the Federal Reserve’s open 
market committee. 

By midday, the benchmark 
30-year government bond was 
up £ at 92ff. yielding 8.126 per 
cent At the short end, the two- 
year note was up & at 993, to 
yield 7.046 per cent 

The dollar made strong gains 
against the Japanese yen and 
the D-Mark early yesterday 
morning; rising nearly a foil 
yen to Y98D4 and more than a 
pfennig to DML5437. 


However, the market was 
more interested in today's Fed- 
eral Reserve meeting. A major- 
ity of traders and market ana- 
lysts expect the Fed to lift the 
target federal funds rate by 50 
basis points to 5K per cent at 
the m eetin g, and most say that 
such an increase has already 
been factored into the markets. 

Inaction by the Fed could 
cause prices to tumble, while 
an increase of 50 or more basis 
points should cheer the mar- 
ket, which is looking for signs 
that the central bank is com- 
mitted to taking a tough stance 
against inflation. Some fear, 
however, that a 50-point 
increase could disappoint the 
market 

In addition to word from the 
Fed on interest rates, traders 
will taka note of a series of 
other economic statistics due 


today, including figures on 
October’s retail sales, indus- 
trial production and capacity 
utilisation. 

Most analysts expect both 
retail s a l es and industrial pro- 
duction to be up 0-5 per cent; 

GOVERNMENT 
BONDS 

capacity utilisation - the 
amount of capital stock being 
used to produce goods - is 
anticipated to be 84^ per cent. 

■ European government bond 
markets followed US Trea- 
suries slightly higher yester- 
day, with most investors stay- 
ing on the sidelines, waiting 
for the impact on US interest 
rates of today's Federal 
Reserve meeting. 


EIB finds firm retail demand 
for $200m of four-year paper 


By Graham Bowfey 

With the market occupied by 
the outcome of today’s US 
FOMC meeting, there were 
only a few small-sized new 
eurobond issues yesterday, 
aimed mainly at retail inves- 
tors. 

Attention this week is likely 
to be focused on the Republic 
of Italy's Y400bn three-tranche 
offering of bonds, of three-, 10- 
and 20-year maturities, expec- 
ted to be launched mid-week. 

In the dollar sector, the 
European Investment Bank 
launched a 5200m offering of 
four-year paper priced to yield 
seven basis paints over US gov- 
ernment bonds. 

Syndicate managers said 
that the offering was expensive 
compared with existing four- 
year paper, such as the EIB 
July 1998 which is currently 
trading in the secondary mar- 


ket at around 17 basis points 
over the yield curve. 

However, lead manager ABN 
Amro reported firm demand 
from retail investors in Swit- 
zerland and the Benelux coun- 
tries. The proceeds were 
swapped into floating-rate 
pesetas, market sources said. 

INTERNATIONAL 

BONDS 

In the yen sector, INI 
Finance launched a Y30bn 
issuer or five-year bonds tar- 
geted mainly at Japanese insti- 
tutional investors. The bonds 
offered a spread of 29 basis 
points over Japanese govern- 
ment bonds. 

After completing a series of 
roadshows in Asia, Germany's 
Bayerische Landes bank is 
poised to launch either a 
dragon bond or eurobond, Leh- 


man Brothers said. Lehman 
has been mandated to lead a 
deal of up to 5500m, although 
the exact terms will depend on 
market conditions following 
the FOMC meeting, syndicate 
officials sairf- 

The Australian and Cana- 
dian dollar sectors saw contin- 
ued activity yesterday. 

New South Wales Treasury 
Corporation launched a 
A$l00xn offering of three-year 
bonds, which were sold mainly 
to Japanese retail investors, 
i oari manager Nomura _ 

Nomura said it was promo- 
ting Australian dollar debt to 
Japanese investors. The cou- 
pon of 'Uj per cent offered par- 
ticularly good value compared 
with three-year Japanese bank 
deposits, which currently offer 
2 per cent, it said. 

Rabobank Nederland 
launched a C£125m offering of 
six-year bonds priced to yield 


■ German government bonds 
edged up in the wake of Trea- 
suries, and the December bund 
futures contract ended at 90.22, 
up 0.15 on the day. 

Mr Paul Compayne, bond 
strategist at Paribas Capital 
Markets, said: “We are seeing 
most of the markets being cau- 
tious ahead of the FOMC meet- 
ing. That meeting will deter- 
mine where markets will go 
over the next few weeks." 

He added that most partici- 
pants were already discounting 
a 50 basis point rise in US 
interest rates, saying: “If there 
is no Fed action as a result of 
the meeting, then markets will 
sell off.” 

■ The UK government bonds 
market remained nervous 
ahead of the FOMC meeting 
and a raft of UK data to be 


published tomorrow. However, 
gilts prices were lifted by the 
rise in US Treasuries and a 
rumour that the CBI distribu- 
tive trades survey, which is 
due to be published today, 
would show that the recovery 
is faltering. 

Analysts were digesting the 
suggestion that the balance of 
UK retailers who had seen a 
rise in sales in the past year 
had fa l le n to a negative 3 per 
cent from a positive figure of 
28 per cent 

■ Swedish bonds put in a 
strong performance on the 
back of the “yes" vote in the 
European Union referendum, 
with the yield on the bench- 
mark ll-year bond foiling 23 
basis points to 10.88 per cent 
On Thursday last week it was 
yielding 11.43 per cent 


Mr Paul Donovan at UBS 
said that the Swedish vote was 
likely to support other Scandi- 
navian bond markets, with 
Norwegian bonds strengthen- 
ing on prospects for its entry 
after the vote cm November 28 
and Danish bonds benefiting 
from international capital 
inflows to the Scandinavian 
bloc. 

He added that the possibility 
of a downgrade of Sweden's 
credit rating by Moody's Inves- 
tors Service, the US credit rat- 
ing agency, remained a threat 
but that fiscal tightening 
might 1 avert this. 

He said: “Thera Is a percep- 
tion that EU membership wfll 
provide an external fiscal con- 
straint on the government 
Investors will now look for far- 
ther fiscal tightening through 
spending cuts." 


NEW INTERNATIONAL BOND ISSUES 


US DOLLARS 
European Investment Bank 
SMM & Co, Tranche If 
SMM & Co, Neths, Tranche If 
YEN 

N Finance* 

Dahra ML Hnance($* 

Dates toll. Flnanceftm* 

D-MARKS 

SMM & Co, Tnmche 2f 
SMM & Co, Watte, Tranche gf 

CANADIAN DOLLARS 
Rabobank Nadertand 

AUSTRALIAN DOLLARS 
New Sth. Wales Treasury Carp.* 

SWISS FRANCS 
SOdwestdeutache Landasbanfc 
SMM A Co, Tranche 3f 
SMM & Co. Naths, Tranche 3t 


Amount Coupon Price 

m. % 

200 7.75 99.35P 

47 (al) 100.00 

122 lei) 100.00 

30bn 4.50 99.96R 

lObn 5.00 100.00 

lObn (bl) 100.00 


Dec. 1998 0.225R 
Nov. 1896 uncfiacL 
Nov. 1996 uncfiacL 


Spread Book runner 
bp 

+7(i) ABN Amro Bank 

JP Morgan Securities 
j P Morgan Securities 


Dec. 1999 0.2SR +29fL9%-99) Menffl Lynch Ms ma Bondl 

Mar-2005 undtocL - Nomura bvanatond 

Mar.200S under* - Nomura Mwnrttanal 


Nov. 1996 mcfiscL 
Nov. 1996 unrfiscf. 


JP Morgan 
JP Morgan 


9.00 99. 783 R ObgJOOQ 0-275R +11(85*%-00) Wood Gundy 


Nomura totemrafansl 


SOdwestdeutflche Landosbar* 150 5.375 102J30 Dec. 1997 ISO - UBS 

SMM A Co, Tranche 3f 50 (a2) 100.00 Nov. 1996 uncfisd. - JP Morgan Sutae 

SMM S Co, Naths, Tranche 3t 250 (a21 100.00 Nov. 1996 undisci JP Morgan Sufaaa 

Final terms and non-catabla unlees stated. The yield spread {over relevant government bond} at launch is suppled by the toed 
manager. *Urtbted. 9 0 emi a nnual coupon Ft Rued re-offer price; fees are shown at the re-offer levaL al) 3-mth Ubor +-HH. n3j 3-mth 
Ubor +16bpL 14 Calabta on 17/3/00 at par. bl) 5% to 17/3/00 and 83% thereafter, i) Over rrtapo&tod yield a) Short 1st coupon, 


11 basis points over Canadian 
government bonds. 

Lead manager Wood Gundy 
expects most of the bonds to be 
taken up by Swiss and Benelux 
retail investors. The proceeds 
were swapped into floating 
rate US dollars, sources said. 

J.P. Morgan led a multi-cur- 


rency offering of collateralised 
two-year floating-rate notes 
denominated in dollars, 
D-Marks and Swiss francs, for 
SMM and reported demand 
from investors across Europe. 
There is strong demand for 
floating-rate D-Mark assets in 
particular, an official said. 


Ces ke Energeticke Zavody 
(CEZ), a Czech power utility, is 
said to be planning a debut 
SlOOm to $150m eurobond, in a 
deal lead-managed by J J. Mor- 
gan. Hip fo ygest company 
listed on the Czech stock 
exchange, is rated BBB- by 
Standard & Poor's. 


byMr Gordon Wo, the Hong 
Kjjog entrepreneur wliio-nins 
Hopewell Holdings, the prop- 
erty and infrastructure con- 


FINANCIAL TIMES TUESDAY NOVEMBER 15 1 994 


First 

Per 

By Richard Upper 

Peregrine Investments 
Holdings, the Hong Song-based 
investment hank, yesterday 
announced the “first closure” 
at 5500m cf its Asian Infra- 
structure Fund and gave 1 
details of to investments. 

The fund, which was 
launched earlier this year; will 
Invest in Asian tetecommuni- 
cations, transport and power/ 
plants, underlining a. growing 
trend towards private, financ- 
ing of infrastructure, especially 
in the emerging markets. 

It has already raised -some - 
5590m. is well on track to meet 
a target of glhn by the time oif 
its final closure next year and 
should eventually match in 
size the AIG Asian Infrastruc- 
ture Fond, which closed in 
June with SL086m committed. \ 

Peregrine's fond is ccnspon- 
sored by Frank Russell Com- 
pany, the International 
Finance Corporation, the Aslan 
Development Bank and inves- 
tors associated with Mr George 
Soros* Quantum Fund. 

Its advisory board is chaired 


Three of the fond’s, initial 
■ investments are iUjConsoli- ; 
dated Electric Power Asia com- 
panies, a group .controlled . by 

Hopewell, with $5Gmeach to be 

channelle d to CEPA unite in 
Indonesia, Pakistan and India. 

The fund has also committed 
to four other projects:; an ini- 
tial $26m in a 108km four-lane 
toll reed linking Chengdn in 
ffidman with Mhmyang; up to 
fSOm in a tetecomimmicationg 
project providing broad band 
digital transmissions between 
Europe .and east Asia; and up 
to $75in in a 235mW combined 
cycle power station in Andhra 
Pradesh In India. 

The - utilities in which the 
fund is investing offer “stable 
and predictable cashflows, but 
because these economies, are 
growing so quickly they do 
have the characteristics of 
growt h stocks,” pointed out Mr 
Philip Tose, chairman of Pete- 


EVC offering priced 


By Martin Brice 

The global offering of stock In 
EVC, Europe’s leading manu- 
facturer of polyvinyl chloride, 
has been priced at FI 77 per 
share, valuing the whole com- 
pany at Fll_L3hn (5650m). 

The price is at the higher 
end of tire FI 70 to FI 80 range 
indicated during the offering, 
which includes a retail tranche 
that starts today in the Nether- 
lands and closes at 3pm on 
Thursday. Allocations will be 
announced on Friday and set- 
tlement date is November 28. 

Shares in EVC, a Dutch- 
based joint venture owned for 
ICI of the UK and Bnichem of 


Italy, will be listed on Ute 
Amsterdam Stock Exchange 
and trading will start on 
November 2L 

A spokesman for S.G. War- 
burg, the UK merchant bank 
and joint global coordinator 
for the pffwfag , y»w- “We are 
very pleased with the way it 
has gome. There was a tremen- 
dous response to the com- 
pany." 

The offering was notable in 
that Greenpeace, the interna- 
tional environmental group, 
criticised research on EVC, 
suggesting that it overvalued 
the company failed to 
warn potential investors of 
environmental risks. 



WORLD. BOND PRICES 


BENCHMARK GOVERNMENT BONDS 



Coupon 

Rad 

Date 

Pries 

Day's 

change 

Ytold 

Week 

ago 

Month 

ago 

AiflMa 

9.000 

08AM 

9a 1200 

_ 

1034 

1071 

1010 

Belgium 

7.750 

10/04 

905300 

+0.090 

827 

048 

82A 

Canada * 

6300 

08/04 

883500 

+0300 

9-18 

92S 

933 

□enmarit 

7.000 

12/04 

88.4200 

+0.720 

8. 78 

932 

858 

Francs BTAN 

8.000 

05/98 

101.4400 

-0.430 

7M7 

758 

748 

OAT 

6.750 

10/04 

9061 00 

-0.160 

&10 

829 

8.02 

Germany Bund 

7.500 

11/04 

1002900 

♦0200 

7A6 

756 

754 

Hrty 

8300 

08/04 

82.4300 

+0320 11J55t 

1230 

1158 

Japan Nolle 

4300 

0099 

1029480 

-0060 

434 

4.10 

431 

Japan No 164 

4100 

12/03 

955320 

-0300 

4.74 

4.74 

4.70 

Nathariands 

7350 

1(YD4 

98.1000 

+0220 

753 

758 

728 

Spain 

8W00 

05/04 

81d8700 

+0260 

1121 

1157 

1092 

uk Gats 

6300 

08/99 

90-13 

-4/32 

8.49 

859 

fl re> 


6.750 

11/04 

87-21 

♦11/32 

8. 81 

8.73 

8.47 


9.000 

1IVD8 

102-31 

+6/32 

083 

a.70 

048 

US Treasury * 

7375 

11A34 

99-11 

♦8/32 

727 

833 

752 


7300 

11/24 

92-30 

+6/32 

ai3 

&16 

7.85 

ECU (French Govt) 

6.000 

04AM 

833600 

+0320 

854 

857 

041 


Italy 

■ NOTIONAL ITALIAN QOVT. BOND (BTPJ FUTURES 
flJFFE)* Lira 200m lOOtiu of 100% 


FT-ACTU ARIES FIXED INTEREST INDICES 


Price tadtoes 
UK Ofits 


— Law coupon yield Msdknn CMjaon yMd Ugh coupon yield — 

Nov 14 Nov 11 YT. ago Nov 14 Nov 11 Yr. ago Nov 14 New 11 Vr. ago 



Open 

SeU pries 

Change 

Htfi 

Low 

Eat vol 

Open InL 

1 

Up 10 5 years [24) 

119.63 

+032 

11851 

1.78 

953 

S yra 

857 

850 

80S 

852 

856 

852 

877 

879 

6X6 

Ok 

10153 

13153 

♦058 

101.74 

101 48 

20762 

54110 

2 

5-15 yeara C23* 

139.12 

+028 

18073 

1.68 

11X0 

16 yra 

853 

857 

897 

866 

858 

7.10 

858 

853 

750 

Mar 

10050 

10088 

+054 

10058 

10040 

1387 

9584 

3 

Over 15 years (81 

16550 

+020 

155.18 

258 

1057 

20 yra 

851 

863 

737 

886 

868 

7.14 

882 

884 

752 









4 

IfTsdaranehtes (B) 

17557 

+038 

174.75 

059 

13.47 

bracLt 

857 

859 

720 















9 

Al stocks (81) 

136.47 

+018 

13022 

157 

1093 











■ ITALIAN QOVT. BOND (DTP) FUTURES OPTIONS (UFFE) Ura200m TOOtfts of 100% 








— 

—InSaUc 

n»- 

— 

— 

-Mattel 

n 10% - 

_ 



Strto 

Price 

Dec 

■ CALLS 

Mar 

Dec 

- PUTS 

Mar 

10150 

083 

155 

050 

2.B9 

10200 

058 

159 

Q.7S 

233 

10280 

020 

1.45 

137 

329 


EsL ««L total. Craa 1882 Puts 1914. Promaua da/a open ht, cuffs 2B14S Puts 32702 


London doting. -Now Yota ntd-day 
t Oaoaa taduiang ra n tidrSiu tax at MJ5 » 
Pitaes US. UK n saris, tffnin doctors 

US INTEREST RATES 


Bratov ban ran . 

RxJJmds 

FULfeoda a! tafcr 


Ommaffi. 
1\ Two mA . 
6fe Thro man* 


YMdK Laaff mariM atandanL 
cam pnaMa by nonraakfanu* 

Spwck MMS HMnatfanaf 


Treasury BBs and Bond Ytetta 

£98 Two jam 

6.40 Tbma pur 

597 Rmjor 

5J® 10-yaar 

090 30-yam 


Spam 

■ NOTIONAL SPANISH BOND FUTURES (MgT) 
Open Sett price Change Hgh 
Dec 87.06 87.10 +4L28 87.10 

Mar 8820 8828 +002 8822 


Uw EaL voL Open inL 
8S92 17,601 78X71 

8820 627 2280 


BOND FUTURES AND OPTIONS 
France 

■ NOTIONAL FRENCH BOND FUTURES (MATTF) 


■ NOTIONAL UK OB.T FUTURES (UFFQ* BSQJMO 32nda of 100% 

Open Sett price Change High Low Eat vol Open bit 
Deo 101-18 101-23 +0-12 101-28 101-02 38283 101914 

Mar 100-22 100-29 +0-12 100-23 100-21 2040 4089 

■ LONG CULT FUTURES OPTIONS (UFFEJ ESOjOOO 84tha of 100% 



Open 

Sen prioa 

Change 

Hgh 

Low 

Eat voL 

Open InL 

SHU 

Pries 

DSC 

■ CALLS 


■ PUTS 

Doc 

11130 

11132 

-012 

111.12 

110.74 

92360 

129.781 

Mar 

Dec 

Mar 

Ma 

11018 

11020 

■012 

11038 

10934 

2X34 

15328 

101 

1-03 

1-81 

0*1 

2-03 

Jui 

10954 

10958 

-012 

10954 

10810 

607 

2384 

102 

0-30 

1-30 

0-48 

2-38 








103 

0-09 

1-08 

1-37 

3-12 


■ LONG TERM FRENCH BOND OPTIONS (MATT) 


Strfur 

Piles 

□sc 

- CALLS — 
Mar 

Jui 

Nov 

— PUTS — 
Dec 

MfV 

110 

123 

1.74 

- 

021 

154 

- 

111 

058 

- 

. 

OKI 

2.09 

- 

112 

020 

058 

- 

120 

. 

• 

113 

035 

055 

038 

- 

357 

. 

114 

031 

052 

- 

- 

- 

- 


EK. ml total, Crffa 97IB Puts 1817. Pistarua day* span tot, Cm 83880 Pin 48118 


Ecu 

■ ECU BOND FUTURES PASTF) 

Open SaC price Change rtgh Low EaL voL Open InL 
Dae 80S8 81-00 +002 81.10 80.76 1308 8285 


Em. vol. to M. cab 2L864 Pin 21700 . Piwkua day* open Int. Can 811288 Pun 283217. 


Germany ■ L 

■ NOTIONAL OERMAN BUND RJTUHBS (UFEy DM260300 lOWhaaf 100% 

Open Rett price Change High Low Eat vol Open Ira. Deo 
Dec 90.18 9028 +021 9042 90.10 88066 182009 ^ 

Mar 89-42 89J38 +023 80.42 8920 6751 28940 •>" 


■ BWB FUTURES OPTIONS HUFFS DM250200 petnta of 100% 


■ US TREASURY BOND HITUBES (CBQ 3100,000 32nda of 100% 

Open Latest Change Hgh Lew Eat wL Opai M. 
Deo 98-02 96-19 +0-17 98-19 98-02 91,529 396.159 

Mar 95-17 96-31 +0-17 9(5-31 95-17 6,497 4B2S3 

Jui 95-05 96-09 +0-17 95-11 96414 44 11,741 


suite 

Pries 

Dec 

Jan 

CALLS - 
Fab 

Mar 

Dec 

Jan 

PUTS 

Fob 

Mar 

9000 

034 

059 

056 

132 

058 

123 

150 

1.88 

9060 

059 

041 

0.68 

032 

051 

155 

130 

136 

9100 

021 

nan 

050 

056 

033 

132 

2.14 

aw 


EaL WL KKflL cun 16424 Pun 12778. PtMou* <ny* opw rit. Ca8* 287920 Pm 235438 


UK GJLTS PRICES 


~YWd_ _ 1994 _ 

K Red PrtaE *or- Ufl Low 


Japan 

■ NOTIONAL LONG TOW JAPANESE QCWT. BOND FUTURES 

(UFFQ YIQOm IQOaha of 100% 

Open Oom Change Low EeL vet Open InL 

Dec 107.75 107.75 107.68 1124 0 

Mar 107.08 107.06 108^7 924 0 

* UFFE ortaai tndad on APT, AO Opan Mare* Bga. n tor prettoM day. 


_ Yield— _ 199* _ 

iff BN W60C+-W- full Law 


(1) (8 meet + or - 


Starts- (Uroap to Rn 

Treat 9PG19MM 

13* 1985 

Bafl S*C 6to 1888-85 _ 

lOLpcinG 

Tran i24|pc laastt 

I4pc 1996 — 

tf+pcimt* 

Bdi 13Upcl96’.jt 

Cbanetoa 1 0pel 998 

nmow7pciaw^_ 

Trees l3Lpci#97tL — 

Bell Wax 1997 

Tram atecT 907# 

Bell ISpc 1997 

Httpc 1998 

taae7>+pc 1998# 

Trees W*c 1995-88^. 

14PC19B8-1 

IltflSIS^pC-98# 

BadilZpc ISQB 

Tens Vine 1988# 

Esdl l2LpC 1999 

Trees 10*21* I960 

Ttots 4*199S fl: 


Rato Mem Ran 

Dweralon IiUmk I989- 
Treafnoftanass — 

8PC2000 

OomBpcnam 

ima13pc2000 

topcTon 

Tpcaooitt 

Sty* 2002 

tycaxoB 

lopearo 

ItinlltyK 3001-4 — 


-lOO&ff 
568 101 A 
828 98V 

6.40 10SU 
828 I05« 
US 1D7H 
72D 111 

728 KHA 
7.74 104 

728 97* 
728 110d 
725 10S& 
8.15 101H 

824 117 1 * 
827 103^ 

825 8GB 
827 AS", 
849 116%8l 
841 122% 
822111fe3ff 
850 103A 

820 HSU 
828 107 W 
849 BOA 


— loan 

4'ss 

-j. nr* 
-A iziu 
-A »iW 
-H USA 
-A 100% 
121H 
-Jf 114* 

-A 11M 
-A iaiH 

— 1141* 
*& 10®* 
102 

— 131A 
140ft 

— 129* 
+«t nea 

— 128ft 
4ft 1Z1A 


1999-4— 

100ft CBMHftn Pape 2004 _ 

Tffiasfi^pcnOi# 

BitfcSOOG 

CB»9lape2Q05 

Tinas 1Z"»c2003-fi 

!SS - 

mf, si*a«o-8tT- — — 
103ft n*as11Vpc20IB-7_ 

m Treat 8t*pe 2007# 

110ft 1 3*190 2604-e 

itM’j Treat Ops 2008 # 

1O0A Trees 8DC 2009 

UBS 

m 

_ _ _ 

722 OaerFfitota Yttre 

i,0ft Trees 8 174pe 2010 

101H Crew Spc Loam# — 

11 ip Trees 4x201 2# 

105ft T0BS 5129c 200a-12t$_ 

88H TM5*2B13tt 

71,1*2018-1 Bl* 

That BVpe 2017B—. 
Eadi 12pe 2013-17 


7-38 7*ft 
0.71 105ft 
821 87HH 

821 891 
827 1Q5B 
828121ftal 

081 83ft 

087 051a 
OOO 115« 
063 88% 

829 IS 

082 102*1 

881 94% 


TJ7 848 80*3* 

070 on ion 

088 058 1IBH 
7.(7 038 7% 
M2 053 
042 823 92ft 

096 051 102ft 

02S &75I2S& 


+ft 86ft 
*H 125ft 
1051* 
* KBft 
+H 125>* 
♦ft 143,1 
♦ft 

4B 111% 
♦h 136ft 
*& 119ft 
+A 15«A 
♦ft IN** 
♦U USA 


♦ft S6ft 
♦ft 1288 
♦ft 127h 
♦ft Ok 
♦ft 1I7B 

-ft 1144, 

♦ft m 

♦ft 1581a 


%C9B 1672| 224 4J8 200ft 

(tyX-aS#— (1S5J8 096 076 107ft 

2>apc‘01 (702) 3.49 386 I69B 

Z^PCTO — boa 385 388181 UN 

Jtycm# (US® ua 387 108*3 

2DE1I8 ns 381 385 188% 

atacin- mm on 38Bts2ian 

2*290*11— . (74JB 388 387 1571, 

2 Jape 13 {^35 171 387 I2M, 

STtzpoTS (818) 173 388 138H 

2*290*20 (ms 075 389 133,’, 

2hga "24# (97.71 3J3 388 110ft 

♦‘tfC’SS# {1301* 177 386 109ft 

ftnspacttm rest raffempOgn rata on protected a 
and (Q 5%. (b) Rgioao in prea n B we aa she 
Indostog fie 8 marths prior to laaue) and have 
reflect rabarfng cf RP1 to 100 In FWbnwy • 
tear 0845. RPI tar Febnray 1994; 142.1 or 
1994: 1458. 


♦Js 203S 197JJ 
♦Ja 113ft 106ft 
♦*e 178% in? 

173S 159ft 
♦ft 11 as, 1071* 
♦ft 1B4U 185ft 
♦Jt 1«ft MUi 
+Jt ini, 1541, 
*H 1461s T2B^ 
♦ty 157ft 134 5 , 
+> 152fi 12812 
+i| ia£ loos, 
+*• 12BH 105% 
mtattan off!) 10% 
tow RH beta far 
s bean actuated to 
1987. Co nver si on 
nd tar Saptanfaer 


Other Fixed Interest 


on sn* 

057 101% 

073 118A 

074 105U 
885 9ft 
0.76 105ft 
088 8S&d 

075 107£ 
094 112ft 


♦A 121» 1«H 

— 1004 99B 
♦ft 971a 98 

+ft 118ft 9ft 


3 1SS SI a®* 4 !* 

ft ml IUB WJI 8L 

+41 ii3jl sft Treaan«« 

ft 127ft 1041a OnoaatoZtyi; 

ft 129*1 109S Tresottipc 


«ft AatanDar10l«pc200S — 088 

126ft Van 111g9C2012 088 

fetMCtaS^IO 088 

9pcGaplS96 OOO 

itnv-e 1288 

HptaOoeta ISocZOll. 1088 
beds 13*ipc 2009 


984 1Q9U 

90S lift 

- 9ft 

- 100 

- Wlft 
083 140*3 

- 12G 


874 

- MB 


Eft 

usiwra3>apcto«L — 
LCCOacTDM. 

952 

“ 

851 

- 41>trt 

♦w 

M3 

3% MKM«r11fepc2D07- 

mis 

958 

BJ8 

- Sft 

♦ft 

71 

Sft HM.lir.3KV 

4.41 

852 

m 

- 3ft 


4ft 

333 |ft«l Atfl3fepc 2021. 


454 

058 

- 2ft 

♦B 

3ft 

aa& ftp-8 mm 

- 

452 

8J2 

- 29 

ft 

37% 

273 04 Uto SMs* Ifttxaoa 

1209 



-1994- 
nr- Huh Uw 

— 13ft 1 07ft 

— 149 118 

ft lift 8ft 
ft 10ft 99*i 
ft lift 108 

— 1691* 137JJ 

— . Hft 125 

— 444, 3ft 

— 4ft 2ft 

— 13ft lift 

— 71 68 >1 

— 15ft 12ft 

— 14ft 12ft 

— 15ft 134* 


6 Up ID 5 years (2) 

7 Over 5 yeara (tl) 

8 Al stocks (13) 

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FINANCIAL TIMES TUESDAY 


NOVEMBER LS 1994 



H ere, exactly as they were brought 

out of China, arc three objects jjjfc *'*’*""* 
which have inflicted more pain 
and terror than you can ever imagine. && 

They are electric batons, smuggled out of W. 
the Chinese prison, where they were being 
used to torture prisoners. 

The dirt on them is real. f 

The man who brought them out took a a 
terrible risk. He was desperate to show the ^ 
world what is happening in China’s prisons. ^ 

The baton on the left is shaped for easy / 
insertion into the body. f 

When the black button is thumbed, the 
three metal bands around the shaft become 
alive with electricity. 

The chunky object looks like a curling tong, 
but when it touches you, there’s a crackle of 
1 blue flame and a shock powerful enough to 
burn skin and damage internal organs. 

. . It was made in rhe Jing Jiang Radio No. 

4 Factory, in Jiangsu, one of many such 
works in China mass-producing electric 
truncheons, cattle-prods and other items, 
which they then proudly advertise in 
glossy brochures. 

In Chengdu city, for instance, the 
Mensuo factory specialises in iron- 
ware: shackles, chains, handcuffs,’ 
thumb-cuffs and leg-irons. 

'-Some of these gruesome objects 
are immensely heavy, others are 
ingeniously designed to cause the 
maximum pain. . . . 

This torturer's toolkit is used 
daily in. China's prisons to punish 
those who have 'called for the democratic 
freedoms we often take, for granted. 

The to rt ure of Liu Gang* 


Liu Gang is a Physics graduate 
student from Beijing who took part in 
the 1989 pro-democracy demonstrations in 
Tiananmen Square. . ' J 

One of the 21 'Most Wanted’ students 
in China, he was jailed in 1989 and later 
sentenced to six years imprisonment for 
‘ counter-revolutionary crimes. 

Liu is what Amnesty calls a ’prisoner of 
conscience’ , that is, someone 
lacked up m prison for 
expressing his non-violent 
political views. 

Not just imprisoned. In a 
letter Smuggled out of China 
last year, Liu claims that he 
has been repeatedly tortured. 
The Chinese Government 
denies this, but no impartial 
investigation has ever taken place. 

Its denial might carry more weight if 
the vicious tortures Liu Gang and other 
prisoners describe were in the slightest bit 
unusual, but, sadly, they are not- 











■ v 

,,-s . 










V */. 

• Si 

’../.a 


JR- 


IHf 1 


AMNESTY 

INlHNAiiONAL 

i.'rjmsi-! sn--.;r:oN 


A catalogue of horrors* 

Vc now begin a catalogue of horrors that 
te people will find upsetting, 
lease read it carefully. The information 
come directly from prisoners who want 
world to know what they are suffering, 
cn they have taken great risks to get the 
tils out. . 

iu Gang was one of .If political prisoners 
1 at. Lingyuan No. .2 Labour-Reform 
achment in Liaoning province. 

Tieir ordeal began when they angered the 
tor fries by refusing to admit they were - 
ninak'- Six were taken away to he tortured. 
Wren the electric baton hiring used on 
g Yuanjuan ran out of power, the guard 
m kicking him with tough leather boots 

broke two of his ribs. 

,eng Wanbao remained silent when 
srioned, so they forced open his mouth 
stuck the electric truncheon in. 

[ong Xianfong y*s attacked in a special 
. The guards applied their electric batons 
ultaneously to different parts of his body 
he started bleeding behind the ears* 

Wien Liu Gang's turn came, they 
bed the electric batons to his genitals- * 
le was put in leg/irons weighing about 
pounds ^ he wore these for several weeks, 
au ucas also forced to sir without moving 
t bench for as long is 12 hours a day- 
ine- his body in agony. 


50,000 vo lts through 
a naked ma n. 

On the second anniversary of rhe 1989 
massacre in Beijing, a prisoner called Li Jie 
staged a one-day hunger strike in memory of 
those who had died in Tiananmen Square 
and elsewhere calling for democracy - many 
of them mown down by machine gum, some 
crushed by tanks. 

He was stripped naked and dragged 
onto a stage where the prison's Brigade 
Commander shouted and blustered at him 
before applying a huge 50,000 volt electric 
baton to his inner thighs. 

Two other guards gave him high voltage 
shocks to his head, neck, shoulders, armpits, 
chest, stomach and fingers. 

Li Jie went into spasms and passed out. 

* St* Qin carries a sword 
on his back/ 

To complement their skill with electric 
batons, many Chinese prison guards are 
shackle experts. 

They have invented several tortures with 
fancy names like: 'Bending three wheels’, 
'A string of bells' , and ' Su Qin carries a 
sword on his bade,' 

• In 'Su Qin’. one arm is bent back over 
the shoulder, while the other is twisted 
behind the back. 

The hands are pulled together and the 
wrists rightly shackled. 

A prisoner manacled in this manner can 

be hoisted by his wrists and left hanging for 
hours, till he loses all feeling in his arms. 

'Chain-shackling' is the science of cuff- 
ing a prisoner's hands and feet together. 

One especially cruel method is as follows: 
find the smallest handcuff that fits the 
prisoner's wrist, then cram both wrist and 
anlde into h, using pliers and hammers to 
snap the cuff shut. 

The pain of this torture is indescribable. 

The prisoner reportedly screams all the 
time he or she remains shackled, until 
silenced by hoarseness. 

Screaming, of course, can make matters 


worse, if it irritates the guards. 

At Mian County Detention centre, in 
1990, one young prisoner was left shackled 
this way for several days. 

He screamed and wailed all day. and all 
night, so loudly and pitifully that no-one 
could get any sleep. 

The shackles finally came off to reveal, 
apparently, rings around his wrists and 
ankles of red, rotting flesh. 

* The old ox 
plo ughing the land / 

In the same jail. Xie Baoquan and another 
prisoner were to be punished for fighting. 

They were handcuffed back ro back and 
a rope was tied around them. A group of 
prisoners was made to run with the rope, 
pulling them along. 

One of the pair was able to crawl forward 
as fast as he could. Xie Baoquan was pulled 
along on his back over the rough concrete. 

This activity, picturesquely called 'The 
old ox ploughing the land’ continued until 
rhe concrere was covered with Xie’s blood 
and his back was one massive wound from 
which the skin and flesh had been scraped. 

He was put back into his cell without any 
medical treatment, his back left to suppurate. 

Xie's cellmates covered his back with a 
cotton blanket which became soaked with 
pus from the wounds, and which filled the 
room with the stink of rotting flesh. 

Forced to eat soap 
from a toilet. 

Some prisoners were playing chess 
with pieces carved out of soap. 

Sported by a guard, they quickly 
threw the soap chessmen into their toilet 
bucket. The guard forced them to fish 
out every piece and eat it. In 
Gutsa Detention Centre. Lhasa, Laba 
Dunzhu, a young Tibetan who had 
taken part in a pro-independence protest 
was taken out into the prison yard and 
made to kneel. 

A guard placed a boot on his neck and 
forced his lace down into the filthy water 
of the latrine. 


Meanwhile, others beat him. 

Laba Dunzhu died of a ruptured spleen. 

She woke 

to find herself d y ing * 

In Seitru Detention Centre, also in 
Lhasa, 26 year old Sonam Dolkar was being 
questioned after having been arrested on 
suspicion of being a Tibetan independence 
sympathiser. 

Tiring of her answers, her cdptors 
stripped her naked, wrapped electric wire 
around her and plugged it into the mains. 

Sonam convulsed and passed out. When 
she regained consciousness, she was lying in 
the same room. Her skin had turned blue. 

Often she was beaten with electric batons. 
Once, Sonam awoke to find that her body 
was covered in bruises and that two ribs 
were broken. They had hit her as she lay 
unconscious. 

Like Liu Gang, she was kept in leg-irons 
for months. The torturers applied electric 
batons to her face and every part of her 
body, including inside her vagina. 

Eventually. Sonam was vomiting and uri- 
nating blood daily. 

We only know of her suffering because 
when she was moved to a police hospital, she 
managed to escape and flee to India. 


[ 


-M- 


something to help* 

If you're as upset by these things as we 
are - and we’re sure you must be - there 
is something simple and effective you 
can do right here and now to help. 
Join Amnesty. 

Even in China, our voice is heard. 
The stronger we are - and the more 
pressure we can bring to beat on the 
Chinese Government - the more 
likely it is that the torture will stop. 
The more powerfully we tell the 
world of the horror in China' s pris- 
ons, rhe more difficult it becomes 
for governments in the free world to 
turn a blind eye to the prisoners' plight. 
This does work. 

From other countries all over the world, 
we receive scores of letters every year from 
prisoners and ex-prisoners who have been 
helped by our campaigning. These include 
people who had been living in daily fear of 
torture or death. 

For them, Amnesty's intervention has 
A brought renewed hope and relief from pain. 
Liu Gang is still in prison. 

Years of torture had left him suffering 
from a prolapsed anus, haemorrhoids, 
psoriasis and heart and stomach trouble. 
Although only 32 years old, his hair 
had started falling out. 

Until just over a year ago, he had had 
no medical treatment and had been 
allowed only five baths in two years. 

But since summer 1993, international 
pressure appears to have improved 
his situation. 

His family have once again been permit- 
ted to visir him and they report that he 
seems to be in better health. 

Earlier this year, foreign journalists were 
allowed to visit the prison where he is being 
held, but weren't permitted to talk to him. 

A letter to each of us 
fr om Liu Gan g. 

Last year, Liu Gang managed to smuggle 
a letter out of prison. Here is an extract: 

“Handcuffs and shackles won't frighten 
me. Electric batons won't silence me. Force- 
feeding and brain-washing won't affect me. 
Forced labour won't change me. Solitary 
confinement and torture won't ever terrify 
me. Regardless of what is done to me, I shall 
continue to use all peaceful and non/violent 
means at my disposal to fight against tyranny 
and abuse." 

Liu faced his ordeal with such courage 
that his fellow prisoners called him 'The 
Iron Man'. 

He and others have taken incredible risks 
to tell the world about their suffering. 

Surely it s impossible that people who 
enjoy the very freedoms which they are 
denied, could learn about their suffering and 
do nothing to help. 

We're not trying to point a finger at you 
- this means all of us. 

Liu's letter to us all ends with these 
words: "I have no option but to fight with 
all my body and soul. Please don't let me 
down." 

There's a coupon immediately below this 
sentence. Please use it now. 




I wish to be a member of Amnesty International. I enclose £19 Individual Q £24 Family D £6 Student G 
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FINANCIAL TIMES TUESDAY NOVEMBER 15 1994 


COMPANY NEWS: UK 


Size the important ingredient 

David Wighton on Johnson Matthey and Cookson s merger moves 


1 a his last annual report, 
Mr David Davies. Johnson 
Matthey chairman, put it 
quite plainly: "Size is an 
important ingredient for a 
company with our ambitions. 
We aim to become a constitu- 
ent member of the FT-SE 100." 

Yesterday, the City was won- 
dering whether sheer size was 
the main ingredient in its pos- 
sible merger with Cookson. 

Such a move would push the 
combined group well into the 
top 100 UK companies with a 
market value of about £2.5bn 
and annual sales of £3.5bn. 

But analysts believe that, 
size apart, the rewards from 
putting the two together would 
be fairly modest. 

"Size brings some benefits in 
its own right but the merger is 
driven more by the ambitions 
of the managements than any- 
thing else," said one leading 
analyst 

Such sceptical views were 
encouraged by the companies’ 
decision not to elaborate pub- 
licly on the merger talks, news 
of which leaked out over the 
weekend 

But the general reaction was 
mildly positive, with Johnson 
Matthey shares ending lOp 
higher at 581p while Cookson 
edged up Jp to 252p. 

The concrete benefits ana- 
lysts could point to were the 
potential cost savings. 

Both companies have large 
London head offices costing 
some £10m a year, and also 
have some overlap in 
operations and research. Elimi- 
nating the duplication could 
generate savings of more than 
£20m year which would be use- 


Johnson Matthey 

Operating profit to December 1994 



PRE-TAX TOTAL £89.0m 

Source: Hoars Qovatt forecasts 

ful. if not spectacular, in the 
context of current combined 
profits of about £200m. 

In at least one business area, 
electronic materials, a merger 
would also make strategic 
sense. 

Cookson is one of the world's 
leading manufacturers of speci- 
ality chemicals and laminates 
used in the production of 
printed circuit boards. 

Johnson Matthey supplies 
many of the same electronics 
manufacturers with comple- 
mentary products. 

Electronic materials will pro- 
vide more than a third of the 
tiro companies’ combined prof- 
its this year and the merged 
group would be one of the top 
five suppliers in the world. 

There are other areas of 


Cookson 

Operating prom to March 1995 



Cl 5.1m 

In teres! -Cl 6.8m 

PRE-TAX TOTAL SMISLOm 


overlap but most have been 
addressed already with the 
joint venture in ceramic col- 
ours and the sale of Johnson 
Matthey’s jewellery materials 
business to Cookson. 

Elsewhere, the groups have 
little in common: Johnson 
Matthey is the world's biggest 
manufacturer of automotive 
catalytic converters and the 
leading marketer of platinum 
group metals; Cookson is 
Europe's largest maker of plas- 
tic' flower pots and a world 
leader in dental floss. 

Johnson Matthey prides 
itself on its high level of 
research and development 
spending, more than one third 
of pre-tax profits last year, and 
sees itself very much as a high 
technology company. In con- 


trast. while Cookson has sold 
off most of its assorted engi- 
neering businesses much of the 
group remains fairly mundane. 

"If you go round Cookson s 
operations you realise that it is 
not as high tech as you might 
think from looking at the pic- 
tures in the annual report." 
commented one analyst. 

One speculation yesterday 
was that the combined group 
might be able to contemplate 
larger disposals of unpromis- 
ing businesses. The companies 
themselves are likely to argue 
that it will allow them to take 
on biggest acquisitions. 

Even if the two companies' 
shareholders buy the argu- 
ments in general there is still 
the ticklish question of valua- 
tion. If shares in the new com- 
bined group were to be allo- 
cated in line with the 
companies' respective reported 
profits Cookson investors 
would get about 57 per cent. 
However, it is thought that 
Johnson Matthey will fight for 
more than 43 per cent, partly 
on the grounds that it has 
more conservative accounting 
policies. Analysts estimate that 
if it were to switch to Cook- 
son's policies on depreciation 
and pensions its profits would 
be some £7in higher. 

Johnson Matthey supporters 
also argue that it has better 
longer term growth prospects 
though this is disputed by 
Cookson followers who point 
out that Cookson 's profits are 
currently growing faster. 

Mr Davies and Mr Dick 
Oster. Cookson's American 
chief executive, have got 
plenty to talk about. 


ADT improves to $35.6m in third quarter 


By Paul Taylor 

ADT. the electronic security services and 
car auction group with operations in 
North America, the UK and continental 
Europe, yesterday reported a modest 3.5 
per cent increase in third quarter pre-tax 
profits. 

The Bermuda-registered group which 
does much of its business in the US but 
retains a UK quote, reported pre-tax prof- 
its of S35.6m in the three months to Sep- 
tember 30. against S34-4m last time. 

Operating profits before goodwill amorti- 


sation of S6.5m <S6.6m) increased by 11 per 
cent to S60.2m ($54 ,2m) on turnover ahead 
8 per cent to S340-3m (8315.7m). 

Net interest costs increased from $l3.4m 
to 814.2m and earnings per share fell to 18 
cents (22 cents). 

The electronic security services division 
contributed 844.7m (S39.lm) to operating 
profits on sales of $249m (8231.3m), while 
vehicle auction services reported operat- 
ing profits of S15.5m (S15.1m) on sales of 
S91-3m ($84.4m). 

Mr Michael Ashcroft, chairman and 
chief executive, said third quarter results 


"were in line with management s expecta- 
tions". 

The third quarter results lifted pre-tax 
profits for the nine months to S111.2m 
($104.8m>. on sales which advanced to 
$1.02bn (8950.8m). 

Earnings per share for nine months 
were down from 67 cents to 56 cents. The 
year-on-year decline reflects the issue of 
20.7m new shares as part of the group's 
refinancing package in August last 
year. 

ADTs shares closed up 30p at 740 p in 
London. 


SBC to 
underwrite 
Matheson 
Lloyd’s issue 

By Ralph Atkins 
Insurance Correspondent 

Swiss Bank Corporation has 
agreed to underwrite half the 
shares in a planned quoted 
Lloyd's of London investment 
company which proposes to 
raise up to £50m to invest in 
the insurance market next 
year. 

Matheson Lloyd’s Invest- 
ment Trust plans to issue up 
to oOra ordinary shares at loop 
each, of which SBC has agreed 
to underwrite 25m. The Swiss 
h ank said it hoped to find sub- 
scribers for the balance in con- 
tinental Europe, east Asia and 
Bermuda, as well as in the UK. 

ML1T intends to spread the 
money raised across about 40 
Lloyd’s syndicates underwrit- 
ing a broad range of insurance 
business. Acting as its Lloyd’s 
adviser is Jardine Lloyd’s 
Advisers, a company set up 
jointly by SBC and JIB Group, 
the international insurance 
broker, earlier this year. 

ML1T is the latest company 
to announce plans for new 
investment in Lloyd's from 
next year, and if successful 
would be one of the biggest 
entrants. 

Investors' appetites for 
Lloyd's have been limited, par- 
ticularly in the UK. resulting 
from the lacklustre perfor- 
mance of similar investment 
companies launched last year 
and tbe continuing bad public- 
ity surrounding the insurance 
market 

However. Mr Michael Ker- 
shaw. executive director at 
SBC, said the bank expected a 
significant move towards lim- 
ited liability corporate invest- 
ment at Lloyd’s. "Yon have to 
take a strong view, one way or 
the other, about Lloyd’s, and 
we have taken a positive one.** 

To boost tbe attractiveness 
of MLTT. a warrant entitling 
shareholders to subscribe for 
I one ordinary share at lOOp 
will be issued with every five 
ordinary shares. 

The latest date for accep- 
tance is November 23 and deal- 
ings in the ordinary shares 
and warrants are expected to 
start on November 29. 


Boots sells drugs side to 
concentrate on retailing 


By Daniel Green 

When John Boot started selling 
herbal remedies in Nottingham 
in 1849. he could not have 
imagined how awkward it 
would be for his successors to 
mind the shop and to discover 
new medicines. 

Yesterday, the management 
of The Boots Company, one of 
the largest employers in the 
east Midlands, opted to concen- 
trate on retailing. 

The decision was no sur- 
prise. Boots has been criticised 
for being too small to compete 
in the drugs industry. Barely 
in the world's top 40 drug mak- 
ers by sales, it needed a break- 
through to stay on terms. 

It was not to be. In the sum- 
mer of 1993 it was forced to 
abandon its most promising 
drug. Manoplax. a heart treat- 
ment, because of side effects. 

The company quickly 


announced a strategic review 
of its pharmaceuticals ■ 
operations. An outright sale r 
was only one of the possibili- 
ties. 

The exercise .followed a 
d eca d e of acquisitions in the 
1980s, culminating in the 
unhappy purchase of retailer 
Wald White in 1989 for £900m. 

The delay In finalising the 
drags business sale was partly - 
because of the price Boots was 
aglHrtg - which, put off such 
suitors as the UK drugs compa- 
nies Zeneca and Medeva - but 
also because of the company’s 
historic commitment to the 
city of Nottingham where it is 
one of the biggest employers. . 

But earlier this month. Boots 
management said that job 
losses were inevitable: Tlais 
cleared a path for a buyer keen 
to cut costs, and provided an 
opportunity for a management 
buy-out. In the end. 


BASF was able to offer more. 

The sale includes all of Boots ; 
overseas prescription drugs 
■ operations. These range from 
insulin sales in India to its big- 1 
gest product, Synihroid, a thy- 
roid hormone, whidi is only 
sold in the US. Other products 
include Brufen and FWbeafor 
rheumatism and - to.,. combat 

inflammation. 

Boots has not left the-health 
business entirely. It stUl owns 
an over-the-counter badnesses 
that includes throat pastilles 
and sticking plasters.. . . . 

Ironically, the sale of the 
drugs division will dilute earn- 
ings.' But Sir James- Blyth, 
chief executive, earlier this 
month sweetened the pill for 
shareholders by suggesting 
that some of the sate proceeds 
might be returned to them. . . 

He did not say whether this 
would take. the form . of a share- 
buy-back or a special dividend. 


Sea Containers shows 
modest growth to $21.7m 


By Simon Davies 

Sea Containers, the Bermuda- 
based leisure, ferry and con- 
tainer leasing group, reported 
pre-tax profits of $21.7m 
i£l3J!m) for the third quarts-, 
marginally up from saim, 

The result brings the figure 
for the nine months to Septem- 
ber 39 to 825.2m (835.5m). 

The group, which owns the 
Orient Express and Hover- 
speed, was adversely affected 
by the removal of a hovercraft 
from Us cross-Channel route. 


By Daniel Green 

Stega Pharmaceuticals, a 
biotechnology company, hopes 
to raise £6 .7m net from a 
flotation in London, according 
to its pathfinder prospectus 
published today. 

It is making a subscription 
offer of 1.9m shares at 400p 
each, representing 52.8 per 
cent of the company's 
enlarged equity and valuing 


in anticipation of the opening 
of the Channel tunnel last 
s umm er. Mr James Sherwood, 
president, admitted that "in 
hindsig ht, this was a mistake”. 

the group has three groups 
of high yielding preference 
shares, and Mr Sherwood said 
Sea Containers was looking at 
asset disposals to fund a 
restructuring. 

Total revenue was 8154m 
($146m) in the quarter. 
Earnings per share for the 
quarter and ninp months were 

SU9 (81.17) and $1.16 ($2.15). 


the company at £14.4m. 

The company is applying to 
trade the shares under Rule 
4 JL 

Stega. incorporated in 
Ireland but based in T.fng, Aus- 
tria, intends to use the pro- 
ceeds to run clinical trials on a 
potential treatment for herpes 
virus infections. 


UAP to pay 
up to £265m 
for Provincial 

By Ralph Atkins 

Union des Assurances de 
Paris, the French, insurance 
company, is expected to have 
to pay between £255m and. 
£265m for Provincial, the UK 
insurance group it has 
acquired in a deal completed 
yesterday. 

UAP announced in .... 
September that it expected to 
pay less than £300m for 
privately-held Provincial. 
Documents sent to Provincial’s 
shareholders are understood 
to suggest that the actual 
consideration is £235m plus a 
farther sum, dependant on the 
UK company’s performance . . 
since the summer, expected to 
be between about £20m and 
£30m. 

UAP bought Provincial as 
part of its plans to expand into 
the UK non-life sector of the 
insurance industry. Of 
particular interest was 
Prospero, Provincial’s direct 
s elling operation. Provincial 


It will move its operations to 
the UK, where large numbers 
of clinical trials are conducted. 


reported pre-tax profits of 
£31. 8m lak year. 


Stega £6.7m flotation 


Tim dUliim nonce b risued m comphancc «uh tbe requirememi of The liuenuuioaal Slock Exchange of the United Kingdom and 
■hr Republic of Ireland Unwed fine London Stock Exchange"). Lining particulars retiring 10 Matheson Lloyd's tmesmeni Trust 
PIC i“tbc Coimim") dated i-itb November. 1994 (“tbe Ldting Particular,"}, prepared in accordance with the List Ins Rules or the 
London Stock Exchange made under Section 142 of the Financial Storm Act 1986 (“Ihc FSA”) base been published which alone 
contain full derails of tne Company and tbe Placing. 

The bring particulars have been delivered to the Registrar of Companies in England and Wales for regiuraiian m accordance »hh 
Section 149 of the FSA. Application ha been made to the London Stock Exchange for all the Ordinary Shares of 25p each m the 
Corapam and the Warrants to subscribe fnr Ordinary Shares, to be admitted to the Official Lac. Ir is expected that admission to 
the Official Lm will become effeetbe and that dealings in the Ordinary Shares and the Warrants mil commence on Tuesday. 29th 
November. 1994. 

Stabilisation, SIB 


Matheson Lloyd’s Investment Trust PLC 

l Incorporated and rcgiMcred in England and Wales under the Companies Act 1985 - Registered No. 2942501) 

Placing 

by 

Swiss Bank Corporation 

of 

up 10 50.000.000 Ordinary Shares of 25 p each 
at a price of IQOp per Ordinary Share payable In full 00 subscription 
with one Warrant Tor eserv five Ordinary Shares 

MLTT is an Investment company formed to allow investors to participate in insurance underwriting at Lloyd's an a broiled liability 
bash. 

Each Warrant vriO confer the njtht to subscribe for ooc Ordinary Share at 1 40p per share on any annual exercise daw loormalW 
15th August!, from 1997 to 1999. 

Shan Capital 

Issued and to be issued 

Authorised fully paid* 

Nominal value No. of shares Nomind value No. of shores 

£10,500.000 66,000.000 Ordinary Shares of Mp each £ 12300.000 50.000300 

• On the basis that the Placing b fully subscribed. 

AvattabWty of Dating Particulars 

Copies of the listing particulars can be obtained during normal business hours on any weekday (Saturdays excluded) up to and 
including 29th November. 1994 from (he following: 

Matheson UorcTs Investment Trust PLC Stria Bank Corporation 

j Finsburv Avenue Swiss Bank Rouse 

London EC2M 2PA 1 High Timber Street 

London EC4V SSB 

Lloyds Bank PLC 

Lloyds Bank Rcgisirar* 

Receiving Bank Services 

Antnrdin House 

71 Queen Street 

London EC4N 1SL 

Copies of the lining particular, mav abo be collected from the Company Announcements Office, the London Stock Exchange. Capet 
Court Entrance, oil Bartholomew Lane. London ECS on 15th and I6u> November, 1994 

15th November. 1994 

y *■ • - . rr ■ 

Further to this company's announcement which appeared in rhe press on 30 September 1994, the board 
of directors of Northam Plan n um Limited has decided, after consideration of a comprehensive technical 
assess tnenr, to refinance rhe company. Where necessary, the conclusions of the technical assessment have 
been confirmed by independent consultants. 

The technical assessment has concluded that a production race of 150 000 tons per mooch to the 
concentrator is not achievable in the near term. A revised initial target of 27 000 square metres per 
month, equivalent to approximately 1 10 OOO cons per month to the concentrator, has been established. 

A lower operating cost structure, appropriate for the revised production target, is being put in place. 

The attainment of cite revised initial targeted metal production, productivity and operating cast 
prrforriKince levels should result in a break-even cash flow position. An equity injection of up to 
R500 million is considered necessary ro retire outstanding debt and to sec the company to the self- 
financing Stage. 

The plan is not without its risks but the conclusions of the technical assessment, taken together with the 
company'; substantial platinum metals resource, have motivated rhe board's decision ro proceed with a 
refinancing of the company. Concurrent with the above programme, all alternatives for expanding the 
scale of operations and maximising the value of the resource will be investigated. 

Discussions are taking place with the company's advisers in regard to appropriate financing 
arrangements. Shareholders will be informed os soon as these discussions have been finalised. 

Gold Fields of Sourh Africa Limited, the major shareholder of the company, has indicated that ir folly 
supports the decision ro refinance die company, ft has agreed to provide bridging finance until such time 
as the financing arrangements have been completed. 

By order of the Board 

Johannesburg Gold Fields of South Africa Limited 



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SIIUO LAND COMPANY LIMITED 

(a company incorporated in Hong Kong with limited liability)/ 

USS 200 , 000,000 5 % Convertible Bonds due 2000 
dlls “Bonds") 

NOTICE TO BONDHOLDERS 

The Directors of Sino Land Company Limited I 'the Company* I proposed 
on 29th September, 1994 to pay a final cash dividend of 16 cents per share 
for the year ended 30th June. 1994. The Directors also proposed a bonus 
issue of shares on the basis of one new ordinary share for every tan ordi- 
nary shares ('Bonus Issue'). 

This final dividend including the Bonus Issue to shareholders whose 
names appear on die register of members on 29th November, 1994 will be 
despatched on 22nd December. 1994 subject to rhe shareholder approval 
at Uie Annual Ganaral Meeting on 29th November, 1994. The register of 
members of the Company will be closed from T7rh November, 1994 to 
29th November, 1994 both days inclusive. 

The Bond conversion price following rhe proposed Bonus Issue will be 
reduced from the current price of HKS8.86 to HKS6.20 effective from 30th 
November, 1994. 

Registered holders of existing Bonds who wish to exercise their conver- 
sion rights attaching to their Bonds so as to participate In the final dividend 
and the Bonus Issue should complete and sign the conversion forms and 
lodge the same together with the Bond certificate to their agent on or 
before 14th November, 1994. Any lodgement, between 15th November, 
1994 to 29th .November, 1994. both days inclusive, by Bondholders will 
entitle them to the final dividend and the cash equivalent of ihe Bonus 
issue. 

By Order of the Board 
Eric Ip Sai Kwong 
Secretary 

Hong Kong 

November 15. 1994 

By: Citibank, NA I issuer Services), Agent Bank CITIBANK* I 


Europi 


C£,| 

>ean Investment Bank 
NLG 500,000,000 

Floating Rate Bonds 1992 due Mav 15, 2002 

In aivorJanc- with the To mi* onJ C. .mini., ns .,1 tho BomU 
mURY i* herein - given that Inr the [merest Periw! Iruni 
November Is. I w 4 F.-bruary 13. 1993 the Int.reM Rale 
ha- lu-en lixnl at 4.f.Sp,T i.-nt. 

The Interest Amount-, jui able <»n bebruan I 3. 1993. u ill be: 
l*»r the denoniinaiimi «,( NLG 10.000. NLu MX.)o' 
fi-r ilie <ien.imiiLUu»n .if NLG 100,000: NI C, 1. 1 XX. 11 
h-r ih. tk-nuniifuihm of NLG / .000.000: iVLi, | I.XX.i .11 

Rabobank Nederland 

threiht. the Neih< rljnd- 


Nmi'inlvr 13, l**94 


Notice to Shareholders 
and Warranlholders of 

Deutschland 
Investment 
Corporation Inc. 

RrsmercJ Office: 

P.O. Bo\ 309 

Ueland Hoiuc. Grand Caiman 
Cayman I viands 
British Wfc-i lnd«. 

It.’pon and Fmanclil Siacments 
for the year to .list July. [994 

Copies of the audited Report and 
Financial Statements tor the year 
to 3 1st July. 1994 are nou arailable 
from the registered office of the 
company, from Robert Fleming St 
Co. Limited. 25 Copcfcill Avenue. 
Loudon. EC2R 7 DR and from 
• Robert Fleming Manascmem 
(Jersey) Limited. Queens House. 
Don Road, Si. Hdier. Jersey JE2 
4QD. Channel Islands. 

ISih November. R 94 



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* 








' •‘"-‘.I _ 



financial times 


TUESDAY NOVEMBER 15 1994 


29 


COMPANY NEWS: UK 


Wardle Storeys edges 
ahead after land sale 


to p av 
! to £265 d, 
tr Provincial 


By Paul Taylor 

^ a e S e ? tin 5 al on the 

^ helped Wardle 
5t f* ey8, the plastic sheeting, 
notary parachute and marine 
safety and survival equipment 
manufacturer, report a modest 
Z pm- cent increase in full year 
profits. 3 

Pre-tax profits increased 
from £8.04m to £&2m in the 
Fear to August 31 bolstered by 
a £1.49in profit on disposals 
including the sale of 9 acres of 
land adjoining the group’s site 
m Brant ham . Suffolk. 

The exceptional gain offset a 
decline in operating profits, 
which slipped to £5.27m 
(£5-84m) and a reduction in net 
interest income which fell to 
£1.45m (£2.21m>. Turnover 
including a £727.000 contribu- 
tion from acquisitions, grew by 
2 per cent to £79.6m. 

Earnings per share increased 
by 10 per cent to 2&9p (21. 7p) 


and an unchanged final divi- 
dend of 12.25p is proposed, 
maintaining the total for the 

year at 17.25p. The shares fell 
by 24p to 371p. 

Operating profits picked up 
sharply in the second half, 
when profits increased by 25 
per cent over the first six 
months. The improvement 
came despite continued weak- 
ness of the lira, which affected 
the performance of the techni- 
cal products division, and reor- 
ganisation costs in both the 
RFD infla tables and GQ Para- 
chutes operations. 

Operating profits in the tech- 
nical products division, which 
makes specialised plastic sheet 
and coated fabrics, increased 
slightly to £2 -55m (£2.49m) on 
turnover which grew modestly 
to £55.1m (£53 .2m). 

The group said margins were 
under pressure due to 
increased raw material costs. 

Operating profits on the 


safety and survival equipment 
side fell from £3 34m to £2.72m 
Oh turnover of £24 -5m (£24 3m). 

Within the division. GQ 
Parachutes, which makes spe- 
cialised parachutes, reported 
operating profits of £l.49m 
(£1.84m) on sales of £8.17m 
(£8.lm). Profits were struck 
after a near-£300,000 charge to 
cover the cost of consolidating 
operations at the Blackmill 
site. 

RFD Infiatables reported 
profits of £L23m (£l-51m) on 
turnover of £l&3m (£16.7m). 

Net cash declined by £43m 
to £27 .3m at the year-end, 
mainly due to the cost of acqui- 
sitions, capital expenditure 
greater than depreciation and 
an increase in working capital, 
partly offset by receipt of part 
of the proceeds from the sale of 
the 

Mr Brian Taylor, chief execu- 
tive, said the current year had 
started strongly. 




Tussauds confident 
about Spanish park 








By Michael Skaptnker, Leisure 
Industries Correspondent 

The Tussauds group, operator 
of Port Aventura, the Spanish 
theme park which opens next 
April, said yesterday it expec- 
ted the project to be profitable 
from its second year. 

Mr Nick Harvey, Tussauds’ 
head of corporate development, 
said at the World Travel Mar- 
ket exhibition In London that 
Port Aventura would avoid 
many of the mistakes which 
have plagued Disneyland Paris, 
the theme park operated by 
Euro Disney. 

Port Aventura wm close dur- 
ing the winter months and will 
not have its own hotels, unlike 
Disneyland, which remains 
open throughout the year arid 
has six hotels which it has 
struggled to fill since the 
park’s opening in 1992. 

Tussauds, which is part of 
Pearson, publishers of the 
Financial Times, owns 40 per 


cent of Port Aventura, which is 
an hour’s drive from Barce- 
lona. 

La Caixa, the Spanish 
Savings hwrik, has 30 per cant, 
Anheuser-Busch, the US 
brewer and theme park owner, 
has 20 per cent and the remain- 
ing 10 per cent is held by 
Fecsa, tiie Spanish utility com- 
pany. 

The park, which has cost 
£30ttn to build, is expected to 
be completed by the end of 
December. 

It is hoping to attract 23m 
visitors in its first year, of 
which 1.1m will come from out- 
side Spain. 

Ms Maggie Bergs ma, who 
markets the park to tour opera- 
tors, said she expected France 
to be tbe biggest foreign mar- 
ket, followed by Germany, the 
Netherlands and the UK. Many 
of file foreign visitors would be 
holidaymakers on the Costa 
Brava, a two-hour coach drive 
away. 



■ dividends announced 



J 

— 

- . . ..... - . 

T . CurranL 

□ate. of 

Corns - 
_poncflng 

Total 
. for. 

Total 

last 

»AWY LiMITEI 


payment ' 

payment 

dividend 

year 

year 


Bfltt Brotttsre 

fin 3-25 

Jan 16 

1J5 

45 

2 


British Steol 

trrt 2 

Jan 16 

OB 

- 

2 


Pilot InvTst 

kit (L56t 

Dec IB 

0B 

- 

IB 


BenoM ... 

kit 1.2 

Jan 27 

0.7 

- 

25 


Sketchley 

Int It- 

Dec 21 

1 

- 

3 J2 

CrtOtSrR S 

Smith (Jan) Ests Int 1.7t 

Jan 16 

: 155 

- 

465 

Wanfle Storeys fin 1255 

Jan 5 

1225 

17.25 

17-25 


Dtvtdanda shown ponce per share net except where otherwise stated. tOn 
increased capital. 


Gartmore 
to launch 
micro trust 

By Bethan Hutton 

Gartmore is to launch an 
investment trust to track a 
new index covering the 
smallest 1 per cent of UK 
equities by market 
capitalisation. 

The WcroCap index has 
been formulated by Professors 
Elroy Dimson and Paul Marsh 
of the London Business School, 
who have also been involved 
in establishing smaller 
companies indices for Hoare 
Govett. 

Tbe new index includes 
about 670 companies, the 
largest of which has a market 
capitalisation of about £29m. 
This imams that there is no 
cross-over with the FT-SE-A 
All-Share index, which has a 
cut-off point of £30m. 

The Gartmore Micro Index 
Trust will take holdings in 
about 500 companies. 

Mr Gary Smith, tbe fimd 
manager, said the trust would 
be capped at £100m. Its 
minim um size has been set at 
£25m- The trust will be 
lamuched by means of a 
placing and public offer, 
imening on December 2. 

• Hoare Govett announced 
yesterday that it had raised 
£30m for an investment trust 
tracking the new Hoare Govett 
1000 index, which covers the 
bottom 2 to 23 per cent of the 
OK equity market 


nj:*-' 


* 





LAWRENCE GRAHAM 

(acting in conjunction with and as agent for the Treasury Solicitor) 

HILL SAMUEL BANK 


and 


NATIONAL ECONOMIC RESEARCH 
ASSOCIATES 

advised the 

DIRECTOR GENERAL 

on the grant of the licence to run 

THE 

NATIONAL 

LOTTERY 

LAWRENCE GRAHAM 


Solicitors 
. 190 Strand 
London 
WC2R.1JN 

Telephone 071 379 0000 



Hill Samuel 

Bank 

Hill Samuel Bank Limited 
100 Wood Street 
London 
EC2P2AJ 

Telephone 071 600 6800 


n/e/r/a 

15 Stratford Place 
London 
W1N9AF 

Tel 071 629 6787 


Sketchley rises 
11% and aims 
to rebuild image 


By Peter Pearse 

Sketchley is poised to embark 
on a marketing rampaig n in am 
effort to rebuild Its image and 
increase awareness of its brand 
name. 

Mr John Jackson, only 11 
days into his new job as chief 
executive, said that dry- 
cleaning was mostly generic, 
but that the Sketchley brand 
was an under-u tilised asset and 
should denote market leader- 
ship in terms of professional- 
ism and reliability. 

Mr Tony Bloom, deputy 
chairman, acknowledged that 
problems in the past had 
tarnished the brand, but a mar- 
keting campaign, probably on 
radio and in the press, would 
start soon to address this and 
to increase awareness. 

The announcement came as 
the dry-cleaning, photo-pro- 
cessing and textile services 
group reported pre-tax profits 
up 11 per cent from £3.61m to 
£4m in the 26 weeks to Septem- 
ber 30. 

Mr Jackson was appointed 
following the departure of Mr 
John Richardson, who with Mr 
Bloom steered Sketchley away 
from the financial brink. Mr 
Richardson left, because “the 
job is done”. 

Mr Bloom said both consum- 
ers and retailers remained cau- 
tious, given that the “macro 
scene is still patchy”. On the 
consumers' side, dry-cleaning 
was “a grudge purchase”. He 
added that the retail side was 
highly operationally geared. 
“Three extra customers per 
day per shop and we'd have a 
really excellent business.” 

Group turnover slipped to 
£74.5m (£75. 7m), including 
£l.49m (£24.1m) from acquisi- 


Sfcetehley 

Share price relative to the 
FT-SE-A All-Share Index 

13S - - - — 



1994 


Source: FT Graptsi* 

tions, as 60 lossmaking 
branches were closed, bringing 
the total to 750. 

So far there are 47 sites 
which combine dry-cleaning 
and Supasnaps, the photo-pro- 
cessing business acquired in 
1993 for £6.6m. The group 
expects to have 150 joint sites 
within 18 months, which will 
involve a move into the north 
of England where Supasnaps is 
already represented. 

The retail division made 

profits of £2.79m (£2.44m) on 
turnover of £45. 8m (£48.9m). 
Profits in textile services rose 
to £2.79m (£L21m) on turnover 
of £28.2 (£25. 3m). Warrender 
Aircraft Services, acquired in 
April for £8. 4m including debt, 
contributed £400,000 to profits 
and £l.5m to turnover. 

Over the half, borrowings 
rose from £11.3m to £15.5m 
after the Warrender buy, giv- 
ing gearing of 42 per cent This 
should revert to tbe 3(K35 per 
cent level of the April 1 year 
end by the end of this year. 

Earnings per share emerged 
at 4Jjp (4.4p) and the interim 
dividend is unchanged at lp. 


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'.■'cci'e Ccn-v.r.icr.' ens 



■« ■ ■**?*<*' 
..p* 


UU ■*«*■ ... 


Oy Sisu Auto Ab 


US$331 million 

Acquisition of Transmac and 
Tractors division of Valmet Oy 


Oy Sisu Auto advised by 

Samuel Montagu 


■S'W* 


►"v 

• <v *. ir'tri 

fed 

/rflVW 

E&Sji 


Odfjell Drilling & Consulting 
Company A/S 

US$55.2 million 

Disposal of oiffield rental tool 
assets to 

Weatherford International Inc 

Odfjell advised by 

Samuel Montagu 


NORWAY 


Ks -.vi™ 

, ■ -.inf! 

=■- 

' .'if - .' TT— 

Sii'L »£■$—— 

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Tank — 


■■ 


***''*& — 






EniChem Synthesis SpA 

£60 million 

Disposal of various businesses 
to 

Great Lakes Chemical 
Corporation 

Enichem advised by 

Samuel Montagu 







Tarkett Group 

Management buy-out 

DM 360,000,000 
Senior Debt Facilities 

Co-arranged by 

Samuel Montagu 


GERMANY 


V '"am 


*> * ■ y. /. *i 










FINANCIAL TIMES TUESDAY NOVEMBER 15 1994 



COMPANY NEWS: UK AND IRELAND 


Former chairman seeks break-up of controlling family trust 

Dunnes battle comes to court 


By John McManus in Dublin 

A two year battle for control of 
Dunnes Stores, Ireland’s larg- 
est retailer, moves to the High 
Court today when Mr Ben 
Dunne, the former chairman, 
wQI ask the court to break-up 
the family trust that has 
owned most of the company 
since the 1960s. 

Mr Dunne lost the chairman- 
ship of Dunne Holdings, the 
group company, in March last 
year after being out voted 3-2 
by the other executive direc- 
tors, who are also his brother 
and sisters. By August last 
year, he had been relieved of 
all executive responsibilities. 

Dunnes has an annual turn- 
over Of I£900m (£880m), 
employs 5,000 people and has 
about 22 per cent of the Irish 
retail market. 


Following an unsuccessful 
attempt in August 1993 to get 
the other members of the fam- 
ily to buy him out, Mr Dunne 
instigated legal action. He is 
seeking to have the trust 
declared invalid, claiming it 
does not operate as a genuine 
discretionary trust and was 
designed to shield the assets of 
the business from the Irish rev- 
enue authorities. 

Set up in the 1960s by the 
company's founder, Mr Ben 
D unne Snr, the trust holds 
99,000 non-voting ordinary 
shares. There are 1,000 voting 
preference shares held equally 
by Mr Dunne, his brother and 
two sisters, as well as tiie 
estate of one sister who died 
last year. 

The ordinary shares are held 
in trust for the children of the 
five preference shareholders. If 


the trust Is broken up. 
the ordinary shares are expec- 
ted to pass to the preference 
shareholders on a pro-rata 
basis. 

Mr Dunne is claiming that a 
decision by the trustees to 
extend the trust after it was 
due to expire in 1985 was not 
valid as they did not have the 
power to do so. By extending 
the trust, a capital gains tax 
bill, estimated to have been 
I£4Gm. was avoided. 

Mr Dunne is also alleging 
that the trustees cannot carry 
out their functions properly 
hec rawp of an “invidious con- 
flict of interest" as some of 
them are also legal and finan- 
cial advisers to the company. 

The four trustees are Mr 
Noel Fox. a senior partner in 
Oliver Freaney. the Dublin 
accountancy firm. Mr Ed ward 


Montgomery, a senior partner 
in Matheson Onnsby Prentice, 
the law firm, and Mr Frank 
Bowen and Mr Bernard 
Uniacke, two partners in the 
Irish practice of Deloitte & 
Touche. 

If Mr Dunne is successful he 
will seek to buy-out his brother 
and sisters or sell Ms shares, 
valued at l£80m, to them. 

In a separate action, due to 
start later this year or early 
next year. Mr Dunne will claim 
that he has been oppressed and 
ask the court to order his 
brother and sisters to sell their 
shares to him. 

Alternatively, he wants to be 
returned to his previous posi- 
tion or have the court make 
his brother and sisters buy him 
out. Failing that, he wants the 
company wound-up and the 
assets distributed 


Kalamazoo returns to the acquisition trail 


By Paul Cheesed ght, 

Midlands Correspondent 

Kalamazoo, the Birmingham-based 
computer services and printed systems 
group, has made its second acquisition of 
the financ ial year with the purchase of 
WIS Computer Systems for up to £5.79m in 
cash and shares. 

“There is more to come. We’ve been 
quite busy. There are a number of discus- 


sions in the pipeline.” said Mr Mike Lan g- 
more, chief executive. In August. Kalama- 
zoo said it expected to spend up to £20m 
this year on expanding Its computer ser- 
vices business. 

The initial payment for WIS, a privately 
owned Cardiff company, is £1.52m in cash 
and £270,644 in new Kalamazoo shares. A 
further consideration of up to £4m in cash 
and shares depends on the net results of 
WIS in the years to January 1998. 


The effect of the share issue, combined 
with the shares issued under employee 
share option schemes announced in Jan- 
uary. will be to dilute the holding of Kala- 
mazoo Trust to less than 50 per cent for 
the first time since it was set up in 1948. 

Earlier this year the trust, established to 
ensure that employees had majority own- 
ership. agreed to accept dilution, thus giv- 
ing the board the choice of using Kalama- 
zoo paper to make acquisitions. 


Revamped 
UK Estates 
cute losses 

UK Estates, which changed its 
name from Sheafbank Prop- 
erty Trust in March following 
a financial restructuring, 
reported reduced pre-tax losses 
for the year to June 30 and 
said that dividends, halted in 
1992, were likely to be 
resumed in the new year. 

Gross income improved to 
£2.89m (£805,000) including 
£ 1.64m from money broking; 
discussions for a management 
buy-out of the latter are under 
way and disposal would com- 
plete the group’s withdrawal 
from financial services. 

Operating profits were 
£384,000 (£260,000). Net inter- 
est charges of £1.03m 
(£600,000) left the pre-tax loss 
at £650,000 (£1.76m). Losses 
per share were 2.58p (I0.4lp). 

March’s reconstruction 
included a placing which more 
than doubled the equity base; 
shareholders’ funds at end- 
June amounted to £16. 6m, np 
from £6. 45m a year earlier. 

Since the period-end the 
group has sold its Parkway 
industrial estate at Tr afford 
Park. Manchester, for 23.6m, 
20 per cent above val nation in 
February. This had underpin- 
ned the outcome according to 
Mr David Gradel. chairman, 
and would allow the resump- 
tion of dividends, starting 
with the preference distribu- 
tion scheduled for January 1. 


Renold jumps to £4.6m 
as orders increase 20% 


By Richard Woffle 

Pre-tax profits at Renold' 
almost doubled in the six 
months to October 1, when the 
chain and gear manufacturer 
experienced a 20 per cent rise 
in orders. 

Hie Manchester-based com- 
pany yesterday announced pre- 
tax profits of £4£m (£2.4m) on 
turnover up 8 per cent to 
£70 (£65.4m), despite lower 

sales in the marhina tools and 
rotors division. 

Operating margins improved 
from 5 to 7 per emit, after a 
lengthy restructuring which 
has cut the workforce by 30 per 
cent to 2.600 in the last four 
years. 

Profits were also lifted by 
lower redundancy costs of 
£300,000 (£500.000) and a 
reduction in interest costs 


Bullers share sale 

Under court order, 5m shares 
(8£ per emit) of Bullers owned 
by Marbank Marmara Bankasi 
have been sold to various 
investors, including certain UK 
institutions, a Paris-based 
investment bank and certain 
private individuals. 

Marmara’s remaining 3£9m 
shares (7.1 per cent) may be 
sold in due couree but not in 
the next six months. 


A N N O U N 


M 


N T 


Financial Results 


< 5 > 


TENAGA 

NASIONAL 




The Board of Directors are pleased to announce the following 

UNAUDITED RESUITS OF THE GROUP AND COMPANY FOR THE YEAH ENDED 31 AUGUST 1994. 

(Amounts in RM million unless otherwise stated) 


TENAGA 
NASIONAL 
BERHAD 
UNAUDITED 
RESULTS 
FOR THE 
YEAR ENDED 
31 AUGUST, 

1994 


GROUP 


COMPANY 


GROUP COMPANY 


Turnover 

investment and other income 

Profit before taxation (i) 

Taxation (note ii) 

Profit after taxation 
Minority interests 

Profit attributable to shareholders 
Notes : 

(0 Profit before taxation is stated 
after chorging/lcrediling):- 

- Depreciation of fixed assets 
■ Interest an borrowings 

- Foreign exchange: 

- Transaction loss/|gain) 

• Translation bss/lgainj 

(ii) Taxation comprises :■ 

Currant year provision 

Over provision in respect of prior years 

Deferred lax 


|iii) Profit before taxation as a percentage 
af turnover 

(iv| Profit attributable to shareholders as 
a percentage of shareholders' funds 

fv) Earnings per share 


1994 

1993 

1994 

1W3 

+ or - 

t-cr- 





% 

% 

5,629.4 

5.0304 

5,608.8 

5.0106 

12 

12 

824 

186 4 

82.9 

187.1 

(56) 

(56) 

1,981.7 

1.848.7 

1,986.4 

I 835 7 

7 

8 

(257.8) 

(320.5) 

(258.4) 

(315 8) 

(201 

U8J 

1,723.9 

1,528.2 

1,728.0 

1.5199 

13 

14 

(M 

(2.81 

- 

- 

(86) 

• 

1,723.5 

1,525.4 

1,728.0 

1.519.9 

13 

14 


732.7 

584.3 

731.1 

583.1 

328.7 

322.6 

328A 

3225 

(250.0) 

(108.6) 

(250.0) 

(108.6) 

5*5 

100.6 

54-5 

100.6 

2654) 

320.4 

258.4 

315.8 

10.9) 

- 

- 

- 

(*3) 

0.1 

- 

- 

257.8 

320.5 

258.4 

315.8 

35% 

37% 

35% 

3?% 

13% 

13% 

- 

- 

57.0 sen 

50.8 sen 

- 

- 


f 

<b 



Earnings per shore is calculated by dividing the profit altar taxation and minority interests by the weighted average number of 
shares in issue during the year of 3,02 1 .8 million (1993: 3.000.2 million). 

(vi) Net tangible assets backing per shore 441 sen 386 sen - 

Net tangible assets backing per share Is calculated by dividing the total net assets by the weighted average number of shares in 
issue during the year of 3,02 1 .8 million (1Q93: 3,000.2 millionl 

Ivii) The authorised ordinary share capital is RM 3,500,000.000. 

(viii) During the year the Company's issued and paid-up ordinary shore capital was increased from RM 3.001,827,000 to 
RM 3.034.622,000 by the issue of 32.795,000 ordinary shores of RM 1 00 aoch at an issuo prico of RM 8.34 per ordinary shore 
pursuant to the exercise of options under the Company’s Employee Share Option Scheme. 

(ix) In the opinion of the Directors, there are no items, transactions or events ol a material and unusual nature which have arisen 
subsequent to the financial year end which would have substantially affected the resulls of the operation of the Group or of the 
Company 

REVIEW OF RESULTS 

The profit after to of RM 1.723.9 million represents a 13% return on Capitol Employed As compared with prewous year, profit after 
tax has imprav-ed by 13% mainly due to Increase soles of electricity to the industrial sector, withdrawal of discounts during the year 
and the realised foreign exchange gain horn loan prepayment. The Directors are ol the opinion that profits lor the year are satisfactory 
given the capital employed and the Company’s need to finance ib srgniheant capital development programme. 

PKOPGSH) OMDEND 

AFmal gross dividend of 7.0 sen per share [ 1993: 7.0 sen) has been recommended by the Board oi Directors subject to shareholders' approval 
r I? P ' Qp ° 5 f d to *** P 31 ® °V 20 January. 1995 to shareholders on the Company's register at the dose of business on 30 December 1994. 

** "iterim gross dividend of 5.0 sen per share { 1 993: 5.0 sen I paid on 8 July. 1 994 the total gross dividend hr tire year is 1 2.0 sen( 

1 993: 1 2.0 senl RegahoWe transfers received by the company up to 5.00 pm on 30 December. 1 994 will be deemed reg«tered in determininq 
the enliBementto the said dividend. Accordingly the Share Transfer Books and the Register of Members will be closed from 3 1 December 1 994 to 
6 January. 1995 (bath dates inclusive] lor the purpose of determining shareholders' entitlement to the dividend 

ANNUAL GENERAL MEETMG 

The Annual General Meefing of the Company will be held on 29 December. 1994. 

PROSPECTS FOR THE CURRBff HNANdAL YEAR 94/95 

The Directors oteef be opinion that with the country's economic growth and in the absence ol unforeseen circumstances the Group will maintain Its 
turnover and prow during the current financial year. 

By Order of the Board 



(Dob' Abdul Rashid bin Ahmad] 
Executive Director 

Kuala Lumpur 
7 November, 1994 


Notes-: 

Currency Exchange Rales on Ncwember 7, 1 994 
One US Dollar = RM2.5850 
One Sterling Pound = RM4. 1 850 


from £800,000 to £600,000. 

Mr David CotteriU, chief 
executive, said: “During the 
bad days, the company 
invested a heU of a lot in the 
factories. That new equipment 
is producing the goods now 
and generating a good cash 
stream.” 

Profits improved at the chain 
operations, where the UK 
plants reported higher sales in 
both domestic and export mar- 
kets. flfy»ns account for 60 per 
cent of group turnover. 

Demand recovered for the 
automotive timing chain pro- 
duced in Calais, as US motor 
manufacturers aim to replace 
belts with longer-lasting ch a ins 
to drive camshafts. *■ 

The gears division reported a 
35 per cent increase in orders 
after attracting contracts for 
escalators in underground 


transport systems, including 
London’s Jubilee line.. : 

The machine tools division is 
ex pected to improve sales , in 
the second half, , including 
orders from the air condition- 
ing ~ food ^distribution 
industries in Japan and Russia. 

Mr CotteriU said, the com- 
pany would seek to acquire 
bolt-on businesses to comple- 
ment its present activities. It 
was also planning to. lift capi- 
tal expenditure from its ^ jaes- 
entxasm- ■ - 

Gearing fell from 19 to £ per- 
cent at the half year stage .as 
net borrowings decreased to 
£l.4m (£KHm). 

Timin gs per share rose to 
5.5p <2-9p) and the interim 
dividend is lifted from O.Tp to 

l-2p. -- 

The shares closed up 4%p to 
178 Vip yesterday. 


NEWS DIGEST 


Distribution 
expansion 
for BOC 

BOC Group has bought two 
further distribution companies, 
taking fts investment in the 
activity to £50m since October 
last year. 

It has bought London Cargo 
Group, one of the UK's largest 
independent air cargo compa- 
nies, and Transports Logisti- 
que Organisation, a French dis- 
tribution company. 

The distribution division 
now operates from 56 sites in 
the UK, France, the Nether- 
lands and Poland. 

Lloyd Thompson buy 

Lloyd Thompson, the Insur- 
ance and reinsurance broker, 
is to buy Graham Bell, a 
marine reinsurance specialist, 
for a maximum £3.5*0- 

An initial £2.08m will be sat- 
isfied as £L75m in cash, with 
the balance provided by the 
issue of 184.761 shares. 

Additional shares with a 
then market value of up to 
£1.42m may be issued on 
November 30 1995, subject to 
performance. 

Bell made pre-tax profits of 
£400,000 for the year to end- 
September, and the assets 
acquired are warranted at 
£750,000. 

Sedgwick disposal 

Sedgwick Group has sold its 75 
per cent stake in CLM Advisers 
to CLM Insurance Fund for an 
initial £L7m. 

Sedgwick will receive an ini- 
tial £1.3m and a further 
amount may be payable in 
respect of underwriting profits 
for the 1994 to 1998 


Lloyd’s years of account. 

Mr Michael Wade, efoef-exEt> 
utive and a 25 per cent:Share- 
holder in CLM Advisers* has 
agreed to receive 4fiOJ)Qfr prefer- 
ence shares instead of cash* 

Aim contract 

Aim Group, the maker of air- 
craft interior fittings, has won 
a North. American contract 
with a potential value of more 
than 950m (£30.4m). 

At the same time, however, 
it warned that low production 
levels would hit current year 
profits. 

Mr Jeff Smith, chairman, 
said that “while this contract 
award further strengthens the 
already excellent outlook for 
1995-96, the current year 
remains difficult with low lev- 
els of production, particularly 
in the first haK, and full year 
profits may be lower than last 
year." 

He said, however, that the 
group was well placed to cope 
with significantly increased 
production rates resulting from 
the new contract and the Saab 
2000 contract. 

Aim Aviation, a wholly- 
owned subsidiary, is to supply 
Northwest Airlines, the Min- 
neapolis-based carrier, with 
integrated interiors for its fleet 
of Douglas DC9-30 aircraft. 

The initial order far 40 air- 
craft sets is valued at more 
than $22m (£13. 4m) with deliv- 
eries to commence in May 1995. 
Northwest has also an option 
on a further 66 aircraft sets. 

Pilot net assets fall 

Pilot Investment Trust suffered 
a fkli.fn fully diluted net asset 
value per share to 130.14p at 
September 30, against 137 
six months earlier. 

Earnings per share were 
lower at 0.97p (lJilp). The 
interim dividend is 0.55p (05p). 


NEWS IN BRIEF 


DRAGON OIL: rights issue 
received subscriptions for 42 
per cent of 56.9m units avail- 
able. Davy Corporate Finance 
is placing balance in the mar- 
ket at rights price of 4p per 
unit. 

FERRUM HOLDINGS is selling 
Spax, maker of shock absorb- 
ers, to Jems, a company con- 
trolled by a Spax director who 
is also a director of other 
Ferrum group companies. 


Consideration is £209,000 in 
cash and loan notes. 

KEWILL SYSTEMS has sold a 
freehold property for £l.3m. 
against a book value of Elm. 
ROPNER is expanding its ship- 
ping division with the $133m 
(£8-4m) purchase of a dry bulk 
carrier.. 

YORKSHIRE FOOD Group has 
disposed of its entire stake of 
fim ordinary shares in Hobson 
for £L92m. 


(gC3 


Cheung Kong 
Finance 
China Limited 

fiHi'it/xi.urJ in ite U.i>nvin IfLuuh 
u,ih (unite J tut* tin,) 

U.S. $350,000,000 

Exchangeable Guaranteed 
Floating Rate Notes 
due 1999 
guaranteed by 

Cheung Kong 
(Holdings) Limited 

(llk-HTIkir.rtld l„ ({.«,* 

•iiA Imjtr.I IhdihiTi 

and exchangeable into 
shares of 
Cheung Kong 
Holdings (China) Limited 

H-m; K.„i( 
mill Immol Ikihhn I 

Nuiiwv i, hereby givcii that tor 
the Intcrcr Fen.*! 14rh No- 
vember. I ‘**4 r„ 14 ill Hcbru.iry, 
1995, rhe Notes will c.irrv .1 
R.itc ot Interest <4 6.1125 per 
vent, per .mnitm. The interest 
Amount per U.S. iJSP.000 
Note wdl K- U.S. $4.05’. 9d. 
r.iviible on I4lh t-ehru.irv. l*W% 


IBukenTruit 

I Company. London AcrmBanW 


U p«15% 

off electricity 

ll I ‘j l*.*.' -r.-z r -;i c* r:'^r ... s 
Vvl’ v ;‘.Ct : . V" \7i' 0 CUCJn ; 

0121 423 3018 

Powerline 




f1Nanc 'al times 


% 


4 


> 



31 


COMPANY NEWS: UK 


Associates’ turnround 
buoys British Steel 


By Andrew/ Baxter 
£ “2* than ernected 

S5Sr2JTh- , s ,d ^ f S£ 

than ' 'sagy -w. more 

ssSed^rs?^! 

b - 5a 

Pre-tax profits for the six 
Potato October 1 ,« 
from E27m to £i59m. OQ turn- 
overhead from n.^b™ 

per share jumped 
from lp to 6.49p and the 
%£%£*«* is nM from 

to its trading statement, the 
company highlighted the 
“m«or improvement" in the 
results from its main associ- 
ated undertakings. 

These include Avesta Shef- 
field, the Angio-Swedish stain- 
less steel producer, and UES 
Holdings, the UK engineering 
steels and forgings concern. 

Analysts had been penc illing 
m a contribution of about £20m 
from associates, against a loss 
of £8m in the previous first 
half In the event, they contrib- 
uted £41m, a performance 
which reflected rationalisation 
and cost reductions. 

Avesta Sheffield, in particu- 
lar, was spurred by increased 


British Steel 

S^are puce relative to the 
FT-SE-A A/I -Share Index 

300 



100 


1993 

Source: FT Graphite 


1994 


demand and selling prices. 

It now appeared well posi- 
tioned to benefit from the cur- 
rent improved trading condi- 
tions, the company said. 

In September, British Steel 
paid £85m to increase its stake 
in the company from 40 per 
cent to 49.9 per cent. Jt had 
previously spent £20m taking 
up its share of an Avesta rights 
issue. 

The recovery at Rotherham- 
based UBS, in which British 
Steel has a 609 per cent stake, 
was less marked. 

It lost £48. lm before tax in 
1993, but has since been trad- 
ing profitably. 

GKN, which owns the other 
39.1 per cent, has made it clear 


NEWS DIGEST 


Bett Bros 
rises 36% 
to £5.9m 

Bett Brothers, the 
Dundee-based housebuilding, 
property and inns group, lifted 
pre-tax profits by 36 per cent 
from £43&n to £5B3m, in the 
year to August 3L 

Last time there was a £2.4m 
credit from the refinancing of 
an associate. 

The improvement reflected 
increased activity and profit in 
all three divisions despite the 
tough trading environment, 
the directors said. 

Housebuilding contributed 
£20.8m (£18m) to sales and 
£3Jm (£2 Jim) to operating prof- 
its. Property and Investment 
turnover was £432m (£JL84m) 
with profits at £3 -3m (£2.t9m), 
while in pubs and hotels turn- 
over and profits were fS.OTta 
(£4.5m) and £lm (£942,000) 
respectively. 

Gearing of only 29 per cent 
formed a basis for expansion, 
directors said. They intended 
to invest in each of the operat- 
ing areas, mainly in extending 
geographic coverage, particu- 
larly in central Scotland where 
a start had already been made 
in housing. 

Earnings per share increased 
to 3256p (ZL84p) and the divi- 
dend is raised from 2p to 4J5p 
via a proposed final of &25p 
(L5P). 

James Smith Ests 

Sharply improved gross rental 
income and a reduced interest 
burden helped Janies Smith 
Estates, the provincial prop- 
erty investment company, 
report a 72 per cent interim 
profits expansion. 

Mr Stephen MuIIiner, chair 
man , said the company had 
made purchases totalling £3£m 
since the end of the half-year 
and was seeking further portfo- 
lios and individual properties 
“which meet our investment 
criteria". 

The pre-tax fine for the six 
months to September 24 
jumped to £1.34m (£775.000) 
reflecting a 42 per cent growth 
to £1.65m (£1.16m) in rental 
income and interest payable 
of just £93,000 (£237,000) 
following the £l2.3m placing 


and open offer in March. 

The interim dividend goes up 
to 1.7p (1.55p), payable from 
earnings of 4.1p (3.37p) per 
share. 

RIT Capital 

Diluted net asset value at RIT 
Capita] Partners, the invest- 
ment trust, rose slightly over 
the six months to September 30 
from 221.6p to 222.1p. 

The rise compared with falls 
of 3.3 per cent in the bench- 
mark FT-SE-A All-Share Index 
and 3.1 per cent for the Invest- 
ment Trust Net Assets Index. 

The net asset value figure 12 
months earlier had been 20G.9p. 

For the half year to end-Sep- 
tember there was a net loss of 
'• A im, compared with profits of 
£2Jhn. Losses per share were 
Z28p (l.S4p earnings). 

Newport purchase 

Newport Holdings, the prop- 
erty investment company, has 
announced the conditional dis- 
posal of a Birmingham free- 
hold property for £2.29m, 
which gives a profit over book 
value of £92,000 before 
expenses and tax. 

It also releases £992,000, 
before expenses, after the dis- 
charge of the mortgage on the 
property, which will be avail- 
able for further investment 

News Inti 

News International is planning 
to amend its Articles of Associ- 
ation following an issue of 
bonus preference shares by 
News Corporation, its Austra- 
lian parent 

Special dividend shares in 
News International are gov- 
erned by a formula that links 
the dividend paid to the divi- 
dend on ordinary shares in 
News Corp. The shares are 
intended to reflect the rights 
and entitlements of ordinary 
shareholders in News Corp. 

The formula is now deemed 
inadequate because of the 
peculiar nature of the bonus 
preference shares issued by 
News Corp on a l-for-2 basis at 
the end of September. 

An amendment to the for- 
mula has been drawn up to 
protect the economic interests 
of the special dividend holders 
in News International. It will 
be put to them at a meeting 
early next year. 



Completion has taken place of the sale of the 
issued share capital oft 

R.N. Bolton limited 
to 

NWF limited 

The shareholders of R.N. Bolton Ud. 
were advised by 

PARMENTIER - ARTHUR & CO. 
LIMITED 

7 The Wails, 46 Doughty Street, 

c London. 

Huntingdon, WClN 

£^4SOte5s2' Tel: 0171 404 6239 


'pannentier-Arthur specialise In the valuation 
of non- quoted shares 


INVEST IN CHAMPAGNE 


Near TOE EUROPORT 
PARIS CHAMPAGNE 





that it does not consider the 
company to be a core business. 

Mr Brian Moffat, British 
Steel's chairman and chief 
executive, said his company 
was a long-term investor in 
UES. He added, however, that 
the company was still "not as 
efficient as we would like it to 
be". 

On British Steel's own trad- 
ing position, Mr Moffat said 
the improvement in UK 
demand in the latter part of its 
last financial year had contin- 
ued into the first half. 

The emerging recovery in 
mainland Europe had also 
strengthened. 

As a result, sales volumes 
had increased by 6 per cent to 
5 -9m tonnes, selling prices had 
continued upwards, and trad- 
ing profit had jumped from 
£38m last time to £120m. 

Capital spending in the first 
half rose by £lm to £43m. Net 
debt was £4 m at die end of the 
period, after the additional 
£105m investment in Avesta 
Sheffield. This compares with 
net funds of £37m at the end of 
fiscal 1994. 

The effective tax rate for the 
half year fell from 22 per cent 
to 17 per cent, following the 
writeback of ACT previously 
written off, and, in associates, 
the utilisation of tax losses 
brought forward. 


Siebe buys US 
group for $90m 


By Andrew Boiger 

Siebe, the international 
controls group, has agreed to 

pay 890m (£54. 8m/ for Triconex, 
a US company which makes 
critical process safety 
shutdown systems for the 
chemicals, oil and gas 
Industries. 

The UK-based group will 
make a tender offer worth 
$17.75 a share; the deal 
has been recommended by 
the board and senior manage- 
ment of California- based 
Triconex, which is quoted on 
Nasdaq. 

Triconex pioneered triple 
modular redundant (TMR) 
technology for the process 
industry. 

Siebe said this provided a 
similar level of safety to that 
available to the aerospace 
industry, at an extremely com- 
petitive cost 

TMR architecture utilises 
three parallel components 
throughout the system, so the 
failure of any single compo- 
nent will not cause an inter- 
ruption in control. 

Siebe said Triconex was not 
only the recognised leader for 
such safety systems, but had 
also been instrumental in mak- 
ing this technology the indus- 
try standard. 

Triconex, founded in 1983, 
has achieved rapid sales 


growth, particularly during the 
past five years. In the year to 
September 30. it made net 
income of $5.2m on sales of 
$48. 8m. It has net assets of 
$38m. 

Its equipment has been used 
for many years by Foxboro. 
Siebe's Massachusetts-based 
subsidiary, which has been 
gaining market share with its 
Intelligent-Automation process 
control systems. 

Siebe said safety shutdown 
systems were the fastest grow- 
ing part of the process control 
industry. 

Although it was paying a 
high multiple of earnings for 
the US company. Triconex was 
already achieving Siebe-style 
margins and was being bought 
for its potential. 

Melville delisted 

Melville Group yesterday had 
its listing cancelled at the exhi- 
bition services and interior fit- 
tings group's request. 

In August, Melville 
announced that it had 
requested Barclays, as agent 
for a banking syndicate, to 
appoint receivers. 

Melville shares were 
suspended in May when it said 
that it was in talks which 
could lead to the sale of a sub- 
stantial part of the business. 


NOTICE OF REDEMPTION 

MORTGAGE FUNDING CORPORATION NO. 2 PLC 

Class B-l Mortgage Backed Floating Rate Notes 
Due August 2023 

NOTICE IS HEREBY GIVEN to Bankers Trustee Company limited (the “Trustee") and to the holders of the 
Class B-I Mortgage Barked Floating Kate Notes Due August 2023 (the “Orm B-i Notes"! of Mortgage Funding 
Corporation No. 2 PLC (the “lamer") that, pursuant to the Treat Deed dated 31st August, 1988 (the “Trust 
Deed"), between the Issuer and the Trustee, and the Agency Agreement dated 3Isl August, 1988 (the “Agency 
Agreement"), between the Issuer and Morgan Guaranty Treat Company of New York (the “Principal Paying 
Agent") nnd others, the hnirr has determined that in accordance with the Redemption provisions set out in the 
Terms and Condition* of the Class 8-1 Notes. Class B-l Notes in thr amount of £1,900,000 will be redeemed on 
30th November. 1994 (the “Redemption Date"). The Class B-l Notes selected by drawing in lots of £100.000 for 

redemption on die Redemption Date at a redemption price (the “Redemption Price") equal to llteir principal 
amount, together with nee rued interest thereon are as follows: 

OUTSTANDING CLASS B-I NOTES OF £100.000 EACH BEARING 
THE DISTINCTIVE SERIAL NUMBERS SET OUT BELOW 
Bearer Nolrfi 

1U 1S3 IBh 246 262 367 369 K24 MB 679 

h87 727 731 832 879 9S4 1032 1042 KW2 

Hie Class B-I Notes may Jbr surrendered for redemption at the specified office of any nf the Paying Agents, 
which arc as fallows: 


trloigan Guaranty Trust Company of New York 
60 Vii-torio Embankment 
London EC4Y0JP 

Union de Ranqaes Suisses (Luxembourg) S.A. 
36-38 Grand-rue 

L-2011 

Luxembourg 


Morgan Guaranty Trust Company of New York 

Avenue dea Arts 35 

B -1040 Brussels. Belgium 

First T rust of New York 

National Association 

100 Wall Street 

Suite 1600 

New York. New York 10005 


In respert of Bearer Class 8- 1 Notes, the Redemption Price will be paid upon presentation and surrender, on 
or after the Redemption Date, of such Notes together with all unclaimed coupons and talons appertaining 
thereto. Such payment will be made (i) in sterling at the specified office of the Paying Agent in Loudon or (ii) at 
the specified office of any Paying Agent listed above by sterling cheque drawn on, or at the option of the holder 
by transfer to a sterling account maintained by the payee with, a Town Clearing brunch of a bank in Loiulon. On 
or after the Redemption Date interest shall cease la acetw on the Class B-l Notes which are the subject of this 
Notice of Redemption. 

MORTGAGE FUNDING CORPORATION NO. 2 PLC 

By: Morgan Guaranty Trust Company 
as Principal Paying Agent 

Dated: 15th November. 1994 

NOTICE 

Withholding of 3 1 % of grow redemption proceeds of any payment made within the United States is required 
by the Internal Revenue Code of 1986 and amended by the Energy Policy Art of 1992 unless the paying 
agency has the correct taxpayer identification number (social serurity or employer identification number) or 
exemption certificate id tlie Payee. Please furnish a properly completed Form W-9 or exemption certificate or 
equivalent if presenting your Class B-l Notes to the Paying Agent in New York. 



,e. v* V?!*** . 

V 


3. 


SPOT THE REFUGEE 


There he is. Fourth row, second J from 
the left The one with the moustache. 
Obvious really. 

Maybe not The unsavoury-looking 
character you’re looking at is more 
likely to be your average neighbour- 
hood slob with a grubby vest and a 
weekends stubble on his chin. 

And the real refugee could just as 
easily be the cleancut fellow on his left 

You see, refugees are just like you 
and me. 

Except for one thing. 


Everything they once had has been 
left behind. Home, family, possessions, 
all gone. They have nothing. 

And nothing is all they’ll ever have 
unless we all extend a helping hand. 

We know you can’t give them back 
the things that others have taken away. 



(SL-q 

United Nations High Commissioner for Refugees 


We re not even asking for money 
(though every cent certainly helps). 

But we are asking that you keep an 
open mind. And a smile of welcome. 

It may not seem much. But to a 
refugee it can mean everything. 

UNHCR is a strictly humanitarian 
organization funded only by voluntary 
contributions. Currently it is responsible 
for more than 19 million refugees 
around the world. 

UNHCR Public Information 

P.O.Box 2500 

121 1 Geneva 2, Switzerland 


INT 


▼ 

/ 

i 









FINANCIAL TIMES TUESDAY NOVEMBER- 1519?4 _ 


COMMODITIES AND AGRICULTURE 


LCE cocoa study clears funds of distortion 


By Deborah Hargreaves 

The hedge fand and 
institutional money that has 
poured into the commodity 
markets this year has not 
made futures contracts more 
volatile nor pushed prices out 
of line with physical supply 
signals, as is believed by many 
traders, according to a report 
to be released this week. 

The report, by Christopher 
Gilbert, professor of applied 
econometrics at Queen Mary 
and Westfield College, part of 
the University of London, was 
commissioned by the London 
Commodity Exchange and is 
the first to examine the activi- 
ties of futures funds in the 
London market. It charts fund 
activity in the world cocoa 
market. 

Prof Gilbert notes that many 
institutional investors have 
been attracted to commodities 


the beginning of the year 
as a way of diversifying their 
portfolios. At the same time, 
short-term trend-following 
funds with fairly large 
amounts of money to trade 
have been increasingly active 
in commodities. 

It is these short-term traders 
who base their decisions on 
technical trends that many 
dealers blame for exaggerating 
price trends and increasing 
volatility in the commodity 
markets. However, Prof Gilbert 
shows that intra-day volatility 
in cocoa has changed little in 
the past five years. 

In addition, he believes that 
there are enough dealers bas- 
ing their decisions on funda- 
mental analysis of the market 
to counteract the effects of 
technical trading. “This sug- 
gests that technical trading is 
unlikely to have any sustained 
effect on prices, but does not 


preclude the possibility that it 
does exaggerate short-term 
price movements," he notes. 

Fund activity does have the 
beneficial effect of dramatic- 
ally improving liquidity In 
agricultural fixtures markets, 
where thinness has been a par- 
ticular problem. This addition 
of depth offsets the exagger- 
ated price movements gener- 
ated by fund activity. Prof Gil- 
bert says “these two effects 
appear in general to cancel". 

He also refutes the sugges- 
tion that funds have pushed 
prices away from physical sup- 
ply signals, concluding that, on 
the contrary, in cocoa they 
have brought the two closer 
together. 

Institutional fund investors 
looking to play the long-term 
trends in commodity markets 
have provided much of the 
growth in liquidity in the 
cocoa market, particularly in 


Hew York, during the past 
eight years. 

Since last July, funds have 
also become huge holders of 
cocoa stocks. From an analysis 
of US regulatory figures, Prof 
Gilbert concludes that these 
funds hold between 300,000 and 
600,000 tonnes of cocoa in the 
London and New York mar- 
kets. 

These holdings account for 
between 25 per cent and 50 per 
cent of the entire stocks held 
by the industry. 

“The commodity funds have 
essentially bid it away from 
the grinders. They are willing 
to pay a higher price to control 
the stock. This reflects their 
concerns about inflation, their 
view that cocoa and other com- 
modities (but not coffee) 
remain cheap and the poor per- 
formance of other invest- 
ments," the report states. 

Prof Gilbert says that the 


purchase of cocoa stocks by 
the funds has coincided with 
the general run-up in price 
experienced by the market. He 
says funds are not necessarily 
pushing the cocoa price out of 
line with market fundamen- 
tals, but that cocoa appears to 
have been under-valued in 
1990- 1992. 

The report suggests that the 
large fund purchases in July 
1993 may have been the cata- 
lyst that triggered a return to 
prices more in line with costs. 
This points to the fact that 
"fund activity has affected the 
level of cocoa prices, but in a 
direction which aligns them 
more closely with market fun- 
damentals". 

Commodity Fund Activity and 
the World Cocoa Market: try 
Professor Christopher Gilbert. 
Available from the London 
Commodity Exchange from 
November 24. 


UN seabed agency 
for its inaugural m 


'KZ buy 


& r ^ 


Pension portfolios seen opening up to commodities 


By Canute James in Kingston 

A new United Nations agency 
to monitor the recovery of min- 
erals from the international 
seabed is to be launched in 
Jamaica tomorrow with, the 
inaugural meeting of the Inter- 
national Seabed Authority. 

UN officials say that all the 
operations of Unisa will be on 
a commercial basis, and that 
the intention is to find an 
orderly method of dealing with 
minerals located on the inter- 
national seabed, preventing 
“chaos and anarchy" in the 
world's metals markets. 

The authority will be respon- 
sible for implementing the Law 
of the Sea Convention, a broad 
agreement on seabed mining 
that was reached after 1Z years 
of contentious negotiations 
between industrialised and 
developing nations. 

The new agency’s work will 
focus on the exploitation of bil- 


lions of dollars worth of poly- 
metallic nodules lying an the 
international seabed, which 
have been declared the “com- 
mon heritage of mankind"' by 
the UN. The nodules contain 
rn piniy copper, nickel, manga- 
nese and cobalt, with smaller 
quantities of other minerals. 

When the negotiations 
started undo 1 the auspices of 
the UN, it was expected -that 
commercial exploitation of sea- 
bed minerals would have, 
started by 1998. UN officials 
now say that seabed mining 
will not begin until about 2008. 

The Law of the Sea Conven- 
tion also creates Enterprise, 
the authority's commercial 
arm, which wfll oversee explo- 
ration and mining through 
joint ventures among private 
companies and states, and Tri- 
bunal, which will adjudicate 
disputes over seabed mining 
among states and co mpan ies. 
The authority and Enterprise 


will he located in Jamaica, 
while Tribunal wfil be based in 
Hamburg. ; 

The negotiationsemthfi con- 
vention were drawn? out 
because, of concerns among 
industrialised states that-de\Eet 
oping country governments, 
would have too mnch aalnfhi- 
ehce on the authority' aid 
effectively confrol seabed min- 
ing. For thefr.Tfflri devdpiang 
countries feared that interna- 
tional consortia with signifi- 
cant te chnolo gical and finan- 
cial resources would 'dominate . 
seabed mining,, depriving 
poorer countries of. the. bene- 
fits.. ... 

The treaty that the -ISA will 
administer makes provisionfor . 
the- protection of. land-based . 
producers of minerals found on 
the international : . market. 
Land-based . producers were 
wonted that -unregulated tea- 
bed mining amid flood man - 
feets and depress prices. . 


By Deborah Hargreaves 

Many large pension funds are 
close to including commodities 
in their investment portfolios 
as a way of diversifying away 
from traditional financial hold- 
ings. according to Mr Steven 
Strongin, vice president and 
commodities strategist at Gold- 
man Sachs, the US investment 
bank. 

"We are now in a bull 
market and some investors are 
taking their first steps into 
commodities, but it will 
probably not be until the next 
production cycle when com- 
modities earn a permanent 


place in many portfolios," he 
said. 

The perception among many 
investors is that commodity 
markets are reaching the peak 
of their price upturn. But Mr 
Strongin pointed out that 
although some metals and cof- 
fee had swung sharply 
upwards, many other commod- 
ities were yet to be affected. 
The Goldman Sachs Commod- 
ity index, which tracks move- 
ments of 22 commodities, is up 
4 per cent so for this year. 

"There is a certain pattern to 
price movements in each busi- 
ness cycle; gold leads the way 
followed by the industrial met- 


als with oil coming later and 
soft commodities last," Mr 
Strongin said. So Ear, the cur- 
rent price run has adhered to 
previous patterns. 

Oil has been left behind as 
other commodity markets have 
taken a roller-coaster ride this 
year, but Mr Neil Bresolin, 
commodities analyst at Gold- 
man, believes that lack of 
investment in production, cou- 
pled with increased demand, 
will be enough to push prices 
up next year. "Oil and coffee 
are the most volatile markets 
so you won't see oil going 
up in a straight line, but 
there is potential for it to 


ratchet up next year," he said. 

Global growth will give a 
boost to all commodity mar- 
kets. Mr Strongin points out 
that strong growth in Asia and 
Latin America is more closely 
linked to rising demand for 
basic commodities as produc- 
tion in those economies is 
more commodity-intensive. 

“The specific timing of price 
moves in different sectors 
depends on the build-up of 
capacity in previous cycles: 
there will be an increase in 
soft commodities fueled by 
demand from developing coun- 
tries. But the bumper US har- 
vest has temporarily dampened 


those markets." said Mr Stron- 
gta. 

Some strong price move- 
ments in metals and coffee this 
year have been blamed on 
speculative action by hedge 
funds ignoring market funda- 
mentals. But Mr Strongin 
believes speculation in com- 
modities cannot be sustained 
for long periods because of the 
discipline imposed on the mar- 
kets by physical realities. 

"The spot markets make 
commodities unique because 
they are based on real physical 
demand for raw materials. 
Anticipatory moves in price 
are difficult to sus tain " 


Stora raises pulp charges still further 


jCl 9 ets 
Jip ,e 

post 


By Christopher Brown-Humes 
in Stockholm 

Stora. Europe's leading pulp 
and paper group, said yester- 
day it planned to increase long- 
fibre pulp prices by a further 
$50 a tonne from January i, 
the sixth price rise in a year. 

The increase, which will lift 
the price of northern bleached 
softwood kraft pulp to $750 a 
tonne, means pulp prices will 
have nearly doubted from their 
$390 at the end of last year. 


The rebound from 19S3’s 
exceptionally low levels has 
been driven by wood short- 
ages, rising demand, and 
inventory bnild-ups. 

A number of North Ameri- ' 
can and European pulp produc- 
ers have recently announced ' 
price rises as part of a general 
industry drive to take advan- 
tage of rising demand and eco- 
nomic recovery. The weaker 
dollar helped to trigger the lat- 
est increase. 

Mr Lennart Holm, president 


of Stora Cell, the group’s pulp 
unit, said he expected : pulp 
prices to continue rising next 
year, although at a slower 
pace. - 

“We think that the price will 
rfimh to $840 to $850. pertonne 
by the end of next year," be 
stated. Prices peaked during 
the last eyrie at $840 a tonne in 
1989. 

■Stora is also Increasing, the 
price of bleached short-fibre 
birch and eucalyptus pulp by 
EcuSO to Ecu580 (£455) a tonne. 




Amoco begins drilling for Silesian coni bed methane Copper prices bounce to 4-year hi ghs 


By Christopher BobbiskI 
in Warsaw 

Amoco, the US oil and gas 
company, has begun explor- 
atory drilling for coal bed 
methane gas in Poland’s Sile- 
sian region, where reserves are 
estimated at between 400bn 
and 600 bn cubic metres. 

Success would enable Poland 


COMMODITIES 


to cut its dependence on Rus- 
sian natural gas imports and 
boost the share of gas in over- 
all energy consumption from a 
present low of 8 per cent. 

Amoco won its concession on 
a 500 sq km plot in the summer 
of last year but delayed drilling 
until Poland agreed in August 
to extend tax breaks allowing 
the company to recoup initial 


costs with future profits. The 
company says it will invest 
between $i50m and $200m on 
developing the gas If the explo- 
ration is successful. 

Mr Michal WilczynskL a dep- 
uty minister responsible for 
energy resources, is confident 
that the present exploration 
effort will produce 5bn cu m of 
coal bed methane a year by the 


turn of the century. 

Poland at present consumes 
about 12bn cu m of natural gas 
a year, of which half is 
imported from Russia. 

Metanel, a Polish company 
controlled by Elektrim. a listed 
energy and telecommunica- 
tions equipment company, 
began exploration work in the 
same region last summer in a 


programme covering seven 
wells at a cost of 120bn zlotys 
fUS$5m). 

Amoco has promised to drill 
15 wells at a cost of $l0m over 
three years. Ten per cent of the 
cost of the programme is being 
financed by the International 
Finance Corporation, the 
World Bank's private sector 
affilia te. 


COPPER prices bounced to 
four year highs at the London 
Metal Exchange yesterday 
after absorbing a morning bout 
of selling associated with the 
approach of "third Wednesday” 
option declarations. 

With that out of the way, 
buyers crowded back into the 
market, pushing the three 
months delivery contract to a 


four-year high of $2,751 a tonne 
at the close, up $68.50. Analyst 
Angus MacMillan of Billiton 
Metals explained that funda- 
mentals remained supportive 
for copper, with stocks con- 
tinuing to fell- 

Other base metals fallowed 
copper’s lead and all ended 
with subs tanti al gains. 

ALUMINIUM, bolstered by 


speculative buying and devel- 
oping supply tightness, gained 
$28.50 at $1,183 a tonne for 
thre e mont hs delivery. 

COFFEE futures pared gains 
to end sharply lower On mixed 
selling triggered by stop-loss 
selling orders in both New 
York and London and higher 
exports from Brazfi. 

Compiled from Reuters 


BASE METALS 

LONDON METAL EXCHANGE 

(Prices from Amrigamud Metal Tradng) 

■ ALUMINIUM. 99.7 PURITY (S per town* 


Precious Metals continued 

■ GOLD COMEX (100 Trey cej Srtwy caj 


GRAINS AND OIL SEEDS 

■ WHEAT LCE (£ par tonne) 


SOFTS 

■ COCOA LC6 (EAoonaj 


MEAT AND LIVESTOCK 

■ LIVE CATTLE CME (40,000bs; cents/bs) 


Close 106*5-6*5 11KL5-82L5 

Previous 1841*48 1854-55 

hfcgh/tow 1877/1851 

AM Official 1847.5-4&0 1888-87 

Kart) dose 1871-2 

Open tat 261,068 

Total dotty turnover 12*242 

■ ALUMBBUM ALLOY (S per tonne) 

Ouse 1810-20 1850-S5 

Previous 1823-28 1853-65 

Ugh/Tow 1820/1810 188011850 

AM OffldM 1805-10 1850-60 

Kart) dose 1850-5 

Open tat 2333 

Total dafly turnover 813 

■ LEAP {8 per tonne) 


1877/1851 
1847.5-463 1888-87 



Sett 

Dart 


Open 



Sett 

Dart 



Open 



Sed 

Start 


Open 


Sen Dart Open 


H 



pries 

range 

ugh 

low kit 

VOL 


Prica 

dbflMQfl 

wtr 

Law 

tat 

MX 


pics 

change 

M* 

Low M IW 


price change Hgti Lew IM 

Wed 

n 


HOT 

3843 

_ 

. 

. 

. 

MW 

103.75 

+650 

103.75 

10*80 

446 

81 

DM 

941 

-2 

946 

939 16429 1.659 

Dec 

70.900 - 71.000 76700 28.908 

*825 

1 HI 


Me 

3853 

*4 

3862 

3861 74.448 10.019 

Jan 

104.40 

+*35 

104.50 

10150 

1*83 

85 

Mar 

987 

■2 

973 

963 4*242 1.045 

Fob 

09.050 -6025 66950 86775 24^82 

4,110 

1 HI 


jh 

387.0 

*4 

. 


. 

Mar 

10630 

+*25 

10630 

10650 

1637 

37 

Hay 

975 

-3 

981 

973 14.895 114 

Apr 

76100 +6125 70.150 66875 15.625 

1^09 

Hj 


Feb 

3883 

-*4 

mo 

3868 24385 

871 

■■y 

10630 

+0*5 

10630 

10630 

1*61 

15 

JM 

989 

■3 

989 

BOB 6,620 3 

Jen 

66675 +0.100 66S00 66750 6361 

757 



Agr 

3917 

-0.4 

ms 

33*9 10,073 

107 

Jut 

11005 

- 

- 

- 

124 


Sap 

1001 

-4 

1002 

1001 12£8G 116 

a*m 

64.425 +6050 64.450 64300 1655 

106 


t 

Jufl 

3984 

*4 

397* 

3961 10.553 

54 

S«p 

33.38 

- 

- 

- 

43 

- 

Dec 

1015 

-3 

1016 

1015 9,751 51 

DM 

66200 +0050 65-200 86000 SO 

417 

pn 

• 

Total 




15*098 11/520 

Tetal 





*478 

208 

Tetal 




11*214 3JB3 

TOM 

TBjUTS 

1,718 

H 



Of broking and jobbing the Pdikan's fimd. 

See hoar sweetly he puts your word onto bond. 

Sktikan 0 


5! .1 

. * ' 


■ *.• r „-j • jt> .. 


Okas 
Previous 
rtgh/taw 
AM OffldM 


8885-67.5 

683-84 

684/6833 


684-85 
6805-81 .0 
687/881 


6633-64.0 681-813 


Kerb dose 


886-8 

■» 

5183 

Open W. 

4*840 


Dac 

5173 

Tbtal doAy turnover 

13,170 


Jh 

5168 

■ NICKEL M per tonne} 


Hta 

Way 

5269 

5315 

ClOM 

7510-20 

7836-40 

JH 

BHM) 

Previous 

7290-000 

7410-20 

Total 



Hgh/tow 

AM Official 7385-90 

Kerb dose 

Open taL 74,322 

Total dally turnover 20,881 

■ mug pc tonne) 


7850/7430 

7520-25 

7830-40 


Close 
Previous 
Hgh/tow 
AM OffldM 
Kerb does 
Open Ml 


6226-35 6325-80 

8140-50 6235-40 

6360/6355 
8175-86 6270-80 

8315-20 

20JT12 


Total daiy (mover 5,582 
■ ZNC. epcctal Ngh grade (9 per tome) 


Ctoae 11685-675 1192-923 

Previous 1141-42 1165-68 

WgriAow 1152 119371168 

AM Official 1151-62 11765-77.0 

Kerb does 1189-90 

Open frrt. 110.782 

Total datty bawowar 27,841 

■ COPPgL grade A ff per tome) 

dose 2781-82 2750-52 

previous 2710-5-11.5 2882-83 

Hghflow 2782/2705 2751/2675 

AM OfficM 2740-50 2892-05 

Kerb doee 2747m 

Open bit 224.321 

Total dally turnover 168,772 

■ HUE AM OfllcW £3 rate J 5*04 

LUBE Ctoctag tit ratal 1-5863 

Spotl .3850 3 nflhrl.5842 6 ndhfct.5B2D 9 afltetASDO 

■ HIGH GRADE COPPER (COMEX) 




Dert 



op™ 



Oeac 

dtawpe 


leer 

fat 

IM 

tee 

12835 

4*05 

12*45 

12630 

1385 

130 

Dm 

12730 

+3.05 

127-90 

12625 3*001 

+ JBB 

Jen 

12670 

+*00 

12630 

12430 

821 

83 

Fab 

12S5S 

4*55 

12660 

11530 

57B 

19 

Her 

12600 

+*30 

12650 

12330 13+283 

1,400 

A* 

123.18 

+*15 

- 

• 

883 

28 

teal 





6*346 

*871 


PRECIOUS METALS 

■ LOUDON BULLION MARKET 

Prices mpptod by N M RdhscMM) 

Gold (Troy azj S price £ eqdv. 

Close 385.00-385.40 

Opening 3845048*20 

Mrertng fix 384.90 242.121 

Afternoon fix 385.10 242583 

Day's High 385.30386.60 

□ay's Low 38440-385.10 

Previous dose 385.30-385.60 

Loco Ldn Maun GoM Landing Rates (Vo USS) 

1 month _ „,„„4.60 6 months — -5.23 

2 months .4.90 12 months _„~_5.B8 

3 months .... 4.95 


■ PLATINUM NYMEX (50 Trey QLjSffipyozJ 

■tea 4147 42.7 4180 411$ 1*536 1778 

Apr 4182 +2.7 4205 417.0 7,185 149 

Jd 4316 +27 4240 4236 1,857 195 

Oct 4287 +27 - • 500 - 

Jm 4317 +27 - - 10 - 

TOM 28188 2.122 

■ PAU AIWJM NYMEX POO Troy qg.; S/tray oz.) 

Dec 15780 +1.40 15880 15780 37» 464 

Mar 15850 +1J0 15875 15720 35» 213 

Job 1G825 +180 • 488 5 

Sep 76080 +U0 31 

TOM 7878 782 

M SM-VBt COMEX (100 Itay oz.; Cante/troy azj 
tow 5183 +1.1 2 2 


128088 1*2B 


ENERGY 

■ CRUDE OB- NYMEX (4*000 US getta. S/teercl} 

latest Day's Opra 

price change Hgfa Lore M VM 

Dac 1801 -083 1808 1789 64,191 50,113 

Jan 1803 -881 1809 1784 92800 40867 

ft* 1789 4083 1883 1788 41842 1*8» 

Mar 1783 +083 1787 1785 25888 4883 

Apr 1782 +087 1782 1780 17,436 1.467 

Mag 1788 +086 1788 1784 12872 1479 

Total 38484311*370 

■ CRUDE OB. IPE (S/barrel) 

Latest Baft Open 

prica donga ffigh Its M IM 

Ok 1783 +0.17 1785 1783 60839 22823 

Jan 1687 +083 1688 1680 73889 20843 

M 18.72 +085 16J7 1682 23876 4856 

ter 1685 +082 1681 1648 1*340 792 

Apr 1648 +083 1&48 1646 5871 135 

My 1*37 -083 1637 1637 3.128 145 

TOW 18*702 4*958 

■ HEATING OIL HTMEK (42800 US gatti; CAB Q»fa-) 

Uuat Day 1 * Open 

prica dang* Htgn Low tat W 

Dac 5046 +085 6080 50.15 38896 138*3 

Jan 5085 +035 51JE 50.70 3*124 5820 

F» 57-55 +0,15 5185 5135 23852 3351 

Mar 5185 +035 5135 5080 13368 1,445 

Apr 5*60 +035 - - 6851 219 

May 5085 +085 - 4810 18 

Total 15*122 248*3 

■ QAS OIL IPE ffrinmfl 

Sell Dart Open 

price Bbanga HP m M W 

D« 15380 -280 15585 15480 3*175 5831 

Jan 15635 -22 156.75 15*00 2336a 3356 

M 15*25 -180 15780 15630 10892 1888 

ter 15830 -135 156.75 15025 *201 411 

Apr 15480 -130 1SS3S 154.75 5839 900 

Jon 15X25 -130 153.75 15335 714 167 

TDM 9*067 11310 

■ NATURAL GAS NYMEX [10300 mirBte SfmwBta) 

Latest Day's Open 

price eftarga Mgb lam tat W 

Dac 1.725 -0316 1.759 IJ1B 28370 *769 

Jan 1365 +0311 1886 I3SS 25821 3363 

W> 1885 +0801 1300 1876 15390 1,100 

Mar 1.975 +0808 1875 1865 1*716 486 

Apr 1840 +0301 1845 1839 7.103 426 

mi 1.645 +0304 1850 1840 *933 489 

145859 1437 


WHEAT CBT fS.OOttRj mta; cantn/BOb UuaheQ 


COCOA CSCE (10 tonnes; S/tomes) 


Dac 

38M 

+3/8 

381/0 

378/4 26374 

*580 

Dec 

1247 

-38 

1276 

1248 

*956 4.883 

DM 

Mv 

392A) 

+3/0 

332/4 

388/D 2*196 

6223 

Mar 

1308 

-24 

1324 

1302 36246 4223 

Fab 

■■7 

388/6 

++2/0 

370/6 

367/2 4,499 

834 

May 

1337 

-18 

1348 

1330 

*394 150 

Apr 

JM 

338/8 

+1ffi 

339/0 

335/* 11338 

*432 

JM 

1360 

-20 

1389 

1355 

3286 58 

Jen 

Sep 

342/6 

+1/2 

34Z/B 

340/0 335 

58 

Sep 

1383 

-20 

1388 

1380 

1.508 B 

Abg 

Dac 

TOW 

352/0 

- 

362/0 

352A) 159 

71308 1*127 

Dac 

1MM 

1413 

-20 

1428 

1415 

6078 15 

6*015 *518 

Oct 

Total 


■ MAIZE CBT (5800 bu min; cents/EBb bushel) 

Dec 21710 -OH 217/2 216/4 99834 21330 

Mar 229/2 -Offi 228/6 228/0 74,175 8356 

May 23514 -tffl 2352 235V 3*036 *028 

JM 240/4 -1/D 241/D 240/0 39353 3895 

Mp 245/2 -1/D 245/4 2454) 3816 362 

Dac 25Q/2 -0« 250/2 246/4 19,225 1832 

TOM 2678*9 97,791 

■ BARLEY LCE {E pw tonne) 

Hnr 9985 - 8935 9*25 3 1 

Jan 10130 +085 10130 10185 478 6 

llta 10330 +025 130 

May 10*00 44 

Sep 9230 +030 2D 

MW 94.40 +080 94.40 94.00 51 1 

Total 726 8 

■ SOYABEftMS CgTROPMu mta; cata/Mt) Bushel) 

Per 556/8 +4/0 5584) HI/4 *377 9301 

Jan 564/4 +3/2 5854) E60/4 55890 30.728 

ter 574/0 +2/4 574W 57W4 27868 38*3 

May 681/4 +2/2 562/D 578/2 14,426 1.307 

JM 586/8 +1/4 5864) 58316 22871 *560 

MOB 588W -0/2 59012 5674) 1896 404 

Total 137851 4*619 

■ SOYABEAN OB. CBT (BO-OOPItw: centaAbj 

OK 2781 +CJM 27 JO 2787 35, 1*057 
Jan 2636 +035 2635 2630 22,796 7.120 

Mar 25J2 +0.14 2585 2530 17842 5858 

May 2583 +087 25.15 M80 1*373 23*4 

M 24.47 +*14 2482 2430 *139 4309 

Ado 2420 +*10 2435 24.10 1,712 425 

Tote 107,432 3*557 


■ COCOA [1CCO) gOBVtanna) 

tea 11 Pita PreaL Aay 

Dal » 96885 96383 

■ COFPg LCE (S/tonne) 

Hot 3360 -70 3435 3350 374 B 

Jan 3403 -68 3475 3389 1*485 2,121 

MW 3383 -59 3425 3343 7.400 1,213 

May 3333 -60 3385 3325 *194 744 

JM 3313 -50 3360 3313 1,686 14 

Sqi 3298 -85 2.108 

Total 2*600 4.1 DO 

M COff^ **? CSCE (37800tt»; oarts/lbal 

Dec 177.15 -080 18*50 17780 *364 *601 

MW 182.15 -785 18980 18280 1*723 *244 

Hay 18580 -680 18180 1BS50 5,465 304 

JM 186.75 -680 19380 10675 1JM6 164 

Sap 18880 -680 19380 10880 182* 90 

Dac 18675 -600 19180 18180 823 14 

Total 31,466 *504 

M COFFEE (ICO| (US centa/puuntO 

Rev 11 Price Pie*, day 

Comp. KM 17782 177,90 

15 day awraga T7HJ0 17690 

M Ho7 PBEMAJM RAW SUGAR LCE (untsAba) 


M UVE HOGS CME (4080abs; oentetos) 

Dk 3*900 +682 34.400 33800 1*888 *052 

Fab 30.825 -0850 37.350 36723 11894 I860 

Apr 37J00 +0.050 37875 37850 5827 4IB 

Jon 4*750 -0075 42850 4*400 *835 429 

Asp 4*400 - 4*450 4*050 562 30 

Oct 38.425 +0.075 3*500 3*400 437 

Total 36063 5864 

M Pomt BBXIES CME (40800tt»; centetap 




M 

41.350 +0200 4*150 40850 

*097 

12405 

Mar 

41JS75 +0225 4*100 41250 

1234 

8 

ter 

42500 +0.175 43250 4*250 

340 

12 

JM 

4*250 - 43200 4*880 

361 

8 

Ang 

Tetri 

42250 +0.100 4*500 41200 

a 

1*12D 

1287 


JOTTER PAD 


LONDON TRADED OPTIONS 

Strike price $ tome — CaAa Puts — 


M SOYABEAN MEAL CBT (IN tons; S/tort) 


Dm 

15*1 

+02 

15*5 

15*5 33268 

*627 

Jm 

isa7 

+02 

161.1 

1601 20226 

*149 

Her 

1642 

- 

1652 

1845 1*052 

1.789 

MW 

1892 

+03 

1666 

16*8 *986 

601 

JM 

1742 

+04 

1743 

1715 1*005 

1.799 

Ang 

176.1 

+03 

1763 

175.7 1239 

743 

Total 

■ POTATOES LCE (EAonne) 

10*287 13,181 

■er 

1060 

. 

. 

• 

. 

Apr 

2445 

+12 

245.0 

2415 1,486 

ei 


25*0 

- 

- 

- 

- 

Jon 

2509 

- 

- 

- 

- 

TOW 1,488 

H RtQQHT IB1FFEX) LCE (51DAndex painQ 

61 

Hot 

1835 

-8 

1B4D 

1835 262 

S3 

Dm 

1795 

• 

1800 

1785 372 

29 

JSfl 

1710 

-19 

1725 

1700 1JE8 

30 

Apr 

1845 

-11 

- 

- 928 

- 

JM 

1490 

-7 

- 

- 132 

- 

Jm 

isia 

- 

- 

17 

_ 

total 

BH 

fire 

1830 

Nr 

1832 


*788 

82 


Apr 1840 +0801 1JMB 18 

EAay 1.H5 4*004 1JB0 18 

teat 

M UNLEAD S3 GASOUNE 
WMEX (42800 US wb: C/UStfU 


JM 

1330 

- 

- 

- 

- 


Kta 

1335 

+042 

- 

. 

90 

- 

tey 

13*4 

+034 

- 


580 

- 

Jm 

1178 

+038 

- 

- 

450 

- 

Tritta 





1,100 

- 

■ WHITE SUGAR LCE (S/tonne) 



Dm 

367 J)0 

-530 33150 38*00 

978 

587 

Mr 

38*50 

■130 

38430 38000 

9.949 

1368 

»»«» 

37850 

-080 

37*00 

37100 

*607 

411 

Ate 

36*30 

-1.30 

38930 

36110 

*801 

373 

Oct 

341 JM 

-130 34130 33930 

1345 

80 

Dec 

33930 

- 

- 

• 

100 

. 

TaW 





1*794 *397 

■ SUGAR *11' CSCE (IHOOCOjs; wnto/tas) 


Ur 

1*68 

+002 

1172 

1155 9BJS015.7B9 

Mv 

11G8 

- 

1*72 

1*57 

29340 

*817 

JBf 

r*45 

+006 

1147 

1334 1*293 4,725 

Oct 

1*85 

+009 

1*89 

1*7* 

15332 4178 

Mv 

1*37 

+007 

1*38 

1231 

3,182 

680 

■tay 

1*30 

+005 

1*28 

1*19 

201 

75 

Total 




16632934.729 

M COTTON NYCE (SOJDOOtog; centstaM} 


Dm 

7150 

+0.43 

74.18 

7100 

1*129 

4330 

Mta 

75.18 

+4)33 

7175 

7100 

20.781 

3393 

May 

7835 

+037 

78.70 

7105 

7386 

492 

JM 

77.15 

+035 

7730 

7188 

4309 

232 

Oct 

7130 

+018 

_ 

- 

638 

23 

Dec 

7030 

+020 

7*20 

8900 

*169 

88 

toW 





55322 *884 

■ ORANGE JUICE NYCE (ISJKXttis; ccntertbM 

Nov 

111J5 

+030 

11230 

11135 

232 

18 

Jm 

11*10 

+030 

11630 

11480 

11282 

1.830 

Mar 

11845 

+aio 

11070 

11835 

5335 

384 

tey 

1ZIM> 

•005 

12*35 

12130 

1388 

B3 

JM 

124.45 

-005 

- 

- 

915 

1 

Sep 

12835 

-030 

12835 

127.B0 

1379 

143 

TaW 





28301 

2330 


■ ALUMPBUM 
(99-7%) LME 

1800 

1650 

1900 

■ COPPER 
(Grade A) LME 

2600 

2850 

2700 

■ COHFEE LCE 

3400 

3450 

*500 

■ COCOA LCE 

905 

ggO 

975 ZULU 

M BRaa CRUDE I 

1650 

1700 

1750 


As Puts 

Apr Feb Apr 

145 52 70 

118 73 92 

95 99 117 

Apr Fob Apr 

164 44 85 

137 60 108 

114 81 133 

Mar Jan Mar 

281 180 298 

243 209 330 

227 241 364 

Mar Dec Mar 

72 2 30 

sa 13 41 

45 34 53 

Jan N» Jen 

74 - 36 

45 - 81 

28 - 91 


CROSSWORD 

No.8,61 1 Set by DANTE 


•• :» 

- ... 

t Via 


LONDON SPOT MARKETS 

■ CRUDE OM. FOB (p& barrsUDoc) +or- 

Dubal 51670-676: -a 080 

Brent Blend (deled) *1 7.12-7.14 -0,140 

Brent Blend (Jan) $18.82-6.84 -0.085 

W.T.L (1pm mQ S16.82-8.84z -0.090 

M OIL PRODUCT^ NWE prompt deBwary OF (lonnaj 


Premium Gasoflne 
Gas 01 
Heavy Fuel OH 
Naphtha 
Jet fUM 
Diesel 


5173-175 
Si 54-157 
5104-106 
SI 72-174 
5180-181 
$162-163 


SlwrFh 

p/troyoz. 

US cts eqiiv. 

Dac 

Spat 

mao 

51175 

Jre 

3 months 

32186 

52*66 

Mr 

6 monte 

33405 

6KL40 

Mar 

1 year 

3484W 

54170 

Hr 

Odd Coin* 

S price 

Eaqui v. 

May 

Krugarand 

387-3)0 

243-246 

teal 

Maple Leaf 

Now Sovereign 

395.75-3KL2S 

9083 

67-80 



Unt Dirt Ope* 

prica (tegs Mgb Low tot W 

5855 +073 5*75 57.40 25,748 11,903 

5635 +038 5640 5670 2*988 *058 

55.20 +A10 5SJ0 5480 *488 1^73 

5*30 +*14 55.10 5610 4^D4 243 

5820 -*18 5*25 57JB0 5,089 68 

5720 4*15 5720 5*70 1*86 9 

6*888 1*844 


TTwe was strong general demand ns wwlws- 
porta the Ten Broken' Asaodatton. Landed 
colovy Assarts were ogtan weB supported at 
lully firm rates. Plainer medunu met more 
entptiry and somalimea advanced but plainest 
Narta tndtana lent 2 to 3p. Bright and ctaauy 
meetum East AMcana were goneretty Mty Ikm 
aMnugn prices eaaed 2 to 3p by the ctosa 
Cai4cn bop’s lost ground but Hie renutete 
ware about steady wfth mare enquiry lor pi's. 
Offshore good demand but at sflghtly ouster 
rates. Quotations: beat awaaMa; I85p/im, nom 
good: 142p/kg, good medium: I22p/kg. 
medium; llZp/fcg taw medtom; 68p. the high- 
est price rested Ihb week was 190p for an 
assam pd 


VOLUME DATA 

Open Merest and Vctene data shewn tar 
contracts traded an COfcEX, NYMEX. CBT. 
NYCE, CME, CSCE and IPE Crude OH are one 
day In arrears. 


INDICES 

M REUTERS (Base: 18/3/31-100) 

Nov 14 Nov 11 month ago yoer ago 
21361 21367 206*7 1610.7 

■ CM ftitaea (Base: 1567=100) 

Now 11 Nov 10 month ago year ago 
23*64 23388 2Z8J2Q 221.84 


PWOtaun Argua. Tot Lor*Jon pm 359 B772 
M OTHER 

SoW (per troy oz£ 538620 -025 

SArer (per troy oz)* 517.5c -2-0 

raamvn (per troy OZJ S412JK5 +0.30 

PaftaMum (per troy oz.) 8156.40 +*15 

Copper (US prod.) 129.0c 

Lead (US prod.) 40.76c 

Tin (Kuala Lumpu) 1648r +026 

Tin (New York) 290.5c +3J 

CatUo Phre woghQt 11678p +0.98* 

Sheep Jive weight)!* 10*48p +362* 

Ptgs Jive weight) 7*20p -*09* 

Lon. day sugar (raw) 533650 +620 

Lon. day wigar (wta) $39650 +11.50 

rate 6 Lyte export £32603 +600 

Barley (Eng. feed) Unq. 

Mate JJS Noa Yellow) 13*0y 

Wheat (US Da* North) 165.0u 

ftabber (Dec)f B62Sp +0.50 

Rubber (Jan)? 85.7£p +0,50 

Rubber (KLRSShtoi Jii) 342 An 

Coconut OH (PNI)S $730A» +*6 

Palm 0» (Matay.)3 $73*Qi +15J) 

Copra (Phf)§ S48*0v +2*0 

Soyabeans (US) £10601 

Cotton OuOook'A 1 Index 78.75c +0.15 

Woof! Ops (64s Super) 453p 

E psr ran unless oOwmh Matad. p pmoa/tg. c centsAb- 
r nrtggt/kg. m Mabyuai ems/kav HwOec. v NaMOec u 
Oct/Nov. I Jen. I Nov. q DecUetif London PhystaL § CF 
Ronerdam. * Briton mart M c km. A Stoop (Uw wMgfat 
priced. ■ Qvsn^e «Nk e Prica* are lor prariaw my. 





ACROSS nou-. 

1 bSUrivtfo® Very qulotly 1 Object Of otSSs(7) 

I "S^ l W attal,oair - 

15 Objects to extremes (4) 7 !??«»* lot * “ Uerest taken 

16 Sho may provide flyine « Nm*ea k- 

coureea (a-7) 71118 8 “ ft ^ l2ai Te sex case 

19 Barmen? GO) « 

20 filings back plans for canned a) 1 month s Presses 

23 Prescription for a sober man 14 b£nr? ** ^ 10331 111 

with a healthy heart (6) n hS» iL, » u 
25 Hade up to appear calm <8) PS wn - 

®*f® glrlto ' na,a 

2S^ 1( ™ mnmsaltocast ^U^bdvanderiiiglulte 

30 Scholar right to approve of ** Up 108 P*®* in 

composer (6) rf®** w 

24 Always uplifted after a kev 
note (5) 

28 Drink it as a cocktail (4) 

Solution to Saturday's prize i mwi. rm o a + nn > n „ 
solntion to rootenlay's pn*S 






‘.v— • 

‘ - 




) . 






financial times Tuesday November 15 1994 


33 




- surtiigj 




car highs 


• -A- 


WORD 





r • >:p 

v * 

• -T '• " V. * 


LONDON STOCK EXCHANGE 


“«®I REPORT 


Late buying surge sees Footsie approach 3,100 

Bn Mu.. 


FT-SE* AD-Shara Index 


EquitySiiaraa Traded 


1,825 


Tumwar^y volume JmaionX SoLcfing; 

«- fnbs^mKiQt bwInttttitfHlofareAAiikjmoucr 
1,000 * 


By Steve Thompson 

Strong support for the dollar and 

^terna tional bjf ™ 

r»f C 5i ClaI decis ion on the 
wurae of US interest rates eneoiur- 
ageo London’s equity market 
launch another attack on the 3 100 

on toe 3,100 

m ™i te flurr y of buying across 
^ te national markets pro- 
2® ^ of support for the 
Pocrtsle future and drove the cash 

25*®*? **** level at the 

g°*L Tfl *Tf E 100 settled 19.4 
higher a t 3.095.3. And dealers were 
Jarful of another good showing by 
UK equities when the market owns 

mis mor nin g 

Some dealers harboured susni- 

SJJSJJ* 1 in specialist 

derivative products, involving spe- 
dflily tailored options, could have 


played a significant part in the late 
drive by leading stocks. Activity in 
these deals has played an increas- 
ingly large part in the London mar- 
ket in the past 12 months. 

Aiding the much unproved mood 
in the market was news of a possi- 
ble merger involving two big UK 
companies, Johnson Matthey and 
Cookson, which could produce a 
£2-5bn new entrant for the FT-SE 
100 Index, and more highly encour- 
aging news on the dividend front 
from the leading UK companies as 
British Steel pleased the market 
with a top of the range interim 
payment 

One of the few minor disappoint- 
ments for the market was the level 
of turnover which, at 492.4m shares, 
continued the recent run of- dis- 
mally low volumes. Last Friday saw 
the value of customer business just 


manage to creep above the £lbn 
mark. 

Turnover in non-FT-SE 100 stocks 
accounted for 302m shares, more 
than 61 per cent of the day's total 
Second line stocks flailed to register 
any significant gains, however, with 
the FT-SE Mid 250 ind ex ending just 
L6 firmer at 3,538.1. 

Big gains in the leaders at the 
close were a reversal of the early 
trend in the market, when prices 
slipped away on very low volume as 
dealers became increasingly ner- 
vous ahead of today's POMC meet- 
ing at which the Federal Reserve is 
expected to hoist its Fed Funds rate 
for the sixth time this year. 

A 50 basis-point rise is viewed as 
the very minimum the markets 
would take as acceptable if the Fed 
is to be seen as maintaining a 
responsible attitude to containing 


US infla tionary trends. Many ana- 
lysts would prefer a rise of 75 basis 
points and many would like to see 
rates increased by a full point 

The first of a big batch of eco- 
nomic numbers from both sides of 
the Atlantic. UK producer prices, 
were broadly as expected and 
played little part in determining 
events in the market. Along with 
the outcome of the FOMC meeting 
today brings US retail sales num- 
bers, industrial production details 
and capacity utilisation figures. 

At its worst, shortly before mid- 
day, the FT-SE 100 was down 6.4 
and being strangled by lack of inter- 
est. Sentiment began to Improve 
over lunchtime, however, with the 
stronger dollar and a firm opening 
by Wall Street prompting keen 
demand across Europe. 

“The sellers dried up and the 


futures boys moved in,” said one 
senior trader, who added that the 
market was in a bullish mood at the 
dose. 

There was heavy turnover in the 
banks, where switching out of Bar- 
clays was said to have driven 
National Westminster and other 
leading clearers better. Lloyds were 
lifted by a recommendation from 
Kleinwort Benson. 

Vodafone took the accolade as the 
FT-SE 100's best individual per- 
former, responding to increasing 
optimism over next week’s interim 
figures. 

The English power generators 
moved ahead confidently, with the 
market looking for the companies to 
fulfil high expectations for their 
respective interim dividends. Pay- 
ments in excess of 20 per cent are 
being sought by the sector’s bulls. 



E Kay Indicators 

Indices and ratios 


FT-SE 100 

3095.3 

+19.4 

FT Ordkoy index 

2379.7 

+14.7 

FT-SE MM 2SQ 

3538.1 

+1.6 

FT-SE-A Non FTns pfe 

16.67 

fiasco 

FT-SE-A 350 

155Z.4 

+7.7 

FT-SE 1 00 Fut Dec 

3099.0 


FT-SE- A Ad-Share 

153751 

+602 

10 yrGtt yield 

BJSB 

B.741 

FT-SE-A All-Share yield 

3.95 

(3.96) 

Long gift/equtiy ytd ratxx 

2J23 

P-23) 

Best perforating sectors 


Worst perforating sectors 


1 Ufa Assurance — — 


+.1.6 

1 Bulkjlna & Const 


-0-6 


Diversified inda. — 
Other Sar. a Bud. 
Pharmaceuticals - 


2 

3 

4 

5 Telecommunications . 


+ 1.2 

.* 1.1 

* 1.0 

+in 


Textiles a Appa .. 

Water 

Breweries 


.-0.4 

..-0.3 


Household Goods 


-0.2 


ICI gets 

triple 

boost 


Chemicals leader ICI was one 
of the stronger performers 
among the FT-SE 100 constitu- 
ents yesterday as the compa- 
ny's joint broker turned bullish 
and. the market focused on the 
phenomenal rises in raw mate- 
rials Of Which ICI is the Twain 
UK manufacturer. Also, inves- 
tors picked up international 
earners ahead of an expected 
US decision on interest rates. 


ICI climbed 16 to 771p. 

Broker S.G. Warburg joined 
the majority of UK investment 
houses by moving to “buy" 
from “hold". Analyst Mr Paul 
Milchrist refused to comment 
on the rationale behind the 
move, but it was bdieved to 
have been prompted by the fall 
in the share price since third- 
quarter figures in October that 
were accompanied by a sharply 
raised earnings forecast. 

The shares received a further 
boost from comments made 
during the profits announce- 
ment from Wardle Storeys, a 
big user of PVC. 

The company, which makes 
items such as trim and seat- 
covering for the car industry. 


EQUITY FUTURES AND OPTIONS TRADING 


Stock index futures moved 
higher yesterday, climbing 
back above 3,100, but trading 
volume remained woefully thin, 
writes Jeffrey Brown. 


The market passed a listless 
morning but picked up once 
Wall Street came into the 
picture. There was a 
reasonable two-way business 


■ FT-SE 100 MD6X FUTURES flJFFE) CgSparftJI Index pokrt 


CAPO 



Open 

Soft price 

Ctangs 

High 

Low 

E3L Mil 

Open frit. 

Dec 

3076.0 

30090 

+21.0 

31080 

30650 

OftOA 

TOTO 

53848 

Mar 


3115-5 

+21.0 



0 

4538 

Jun . 


3138.0 

+180 



0 

80 


■ FT-SE MID 250 MDEX FUTURES JJFFEJ CIO par fuf indue paint 


Dec 


SS35.0 3542a 


+70 3535-0 3535.0 


4167 


■ FT-SE MID 250 SIPEX FUTURES (CUfl-X) CIO per hri krinx potot 

Dec - 3548.0 - - 0 

AH open M«nt bgira mi for previous day. 1 Exact wafcana ahoum. 

■ FT-SE 100 MDBt OPTION (UFFQ (*3067) E10 par M hrdeoc point 

2900 2960 3000 3060 3100 3150 3200 3250 

CPCPCPCPCPCPCPCP 
Nov 117 1 1402 11 2 w 3*2 54*2 10*a Z2*z 29 6 66*2 tiz 11B 1 166 

Dec 213 14 172 72h W2 35 9tt» 50 69 72«a 46*2 101 29 134*2 19*2 174*2 

Jan 238 33 Zm2«*a IBS 58*2 US IBfeUBb 97 7S>2 122>a 88*2 162% 39*2 198 

Kb 256 40 220 54 183*2 67*2 10*2 86*2 123*2107*2 97*2 133*2 77 163*2 58 198*2 

iunt 299 72*2 ZB 105*2 171*2 M4 127*2199*2 

0*5.459 ft* 10KB 

■ EURO STYLE FT-SE 40QP4PEX OPTION (UFFEj EiQ perlufr Index port 

2825 2075 3026 307S 3125 3175 322S 3275 

Rn m 1 121*2 2 75*2 6 37*2 18 U 43*2 Z*2 83 1 131 1 180*2 

Dec 19? 18*2151*2 28 116*2 42 M 80 57% 83^ 3P 2 112 2! !46% 12 ™6% 

Jan 213*2 33 178 47 143*z 62 115 63 86 106 68 135 48 165*2 36 Wat 

Mb 243*2 57 175 86*2 119128** 77 184 

J«lt 2B2*a 79 2U*z111*2 ttZ 151*2 US 201 

Cat* 1,419 PiU VB4 ' Unto))*# Mn rata Prontaro 3Sw« urn toad on artnxBMi prtcra. 

1 1 ffflg (ffjpfl upky monta. 

■ euro style ft-se mm 25o emex op-now gio par m fcxtex potnt 


3400 3460 SSOO 3550 3800 

Oct 114 49 66 71*2 61* 99 

Oris 0 ftte 0 MMmt pricss and wmoa aw ter a AXtm. 


FT *■ $E Actuaries Share Indices 


3860 


3700 


3750 


said it had budgeted for price 
rises of at least 40 per cent in 
the six months from the start 
□f September, and Wardle fell 
24 to 37Ip on concern over the 
squeeze in profit margins 

Id’s involvement in PVC is 
modest, but analysts responded 
to the overall boom in com- 
modities - Smith New Court 
expressed its support at the 
afternoon meeting. 

Finally, many investors were 
alighting on leading dollar 
earners in anticipation that the 
US Federal Open Market Com- 
mittee might raise its key Fed 
Funds rate today. Any increase 
will stimulate support for the 
US currency. 

Dollar strength also helped 


from 3pm onwards but 
contract numbers stayed low. 

The FT-SE 100 December 
contract was 3,101 at the 
does of put trading, up 28 
points. The premium to the 
cash market was around 13 
points, with fair vafue some 6 
points. 

A number of major houses, 
notably NatWest and GNI, 
were In action during the 
afternoon but contract 
numbers totalled just 8,545, 
little better than the 8,073 
traded on Friday when large 
parts of the Continent were 
dosed. 

In late, screen trading the 
December future moved ahead 
a few more points to 3,108 but 
again there was no real 
enthusiasm, with contract 
numbers for the day staying 
under 10,000. 

Stock option activity was 
also tittle changed from Friday, 
with 31,163 contracts dealt, 
against 31,129. FT-SE and 
Euro FT-SE business 
accounted for 23,000 lots. 

Lonrho was again far and 
away the busiest individual 
stock option, turning over 
2,350 lots. J. Sains bury (855 
contracts) and BT (530) were 
also active. 


Day's Year 

Nov 14 c*ig8% Mow 11 Nov ID Nov 9 ago 


Div- Earn. 

yMtffc yWdW 


P/E Xd a* 
ratio ytd 


Total 

Return 


FT-SE 100 30B&3 +00 3075.9 3103-5 

FT-SE MU 260* 3538.1 — 3538-5 3542.0 

FT-SE NU 250 ex Im Trusts* 3641.8 — 35403 35452 

FT-5E-A 3600 1552.4 +05 1544.7 15500 

FT-SE smaroap 1777.92 -0.1 1760.02 1762.13 

FT-SE SRwNCap « In* True* 174046 -0-1 174096 175098 

FT-SB-A ALL-SHARE* 1537.31 +0.6 153039 154093 


30908 

35333 

3533-5 

1553.6 

1781.83 

17604)5 

1538.63 


30B3-3 
34105 
341 2.0 
1639.8 
1782.91 
174454 
1524.77 


■ FT-SE Actuaries All-Share 


Day's 

Nov 14 chgo% Nov 11 Nov 10 


Year 
Nov a ago 


4.12 74» 

305 581 

3.70 029 

389 077 

383 001 

153 558 

305 8.85 

Olv. Esn 
yU*S% yjaldW 


1074 114.68 
2075 12069 
1033 125.77 
1751 5049 
25.17 5124 
2083 53.25 
1758 55.18 


117502 

1325.54 

1324-45 

120668 

138404 

1384.81 

121557 


P/E Xd a4. Total 
ratio ytd Return 


10 MINERAL EXTRACnONfl* 267000 

12 Extractive Indu9tteet4) 37B8.62 

16 09, Integrated^} 264052 

10 O P Exploration & ftodfllj 1863^2 , 


+05 2667.86 270107 2718.98 240900 
+0.6 3767.55 380143 3794.63 3031 .60 
+03 283807 267084 209554 2411X0 
-02 1880.74 1371.52 787807 1867.30 


302 

5.11 

24.74 

6803 

1060-35 

308 

5.42 

2203 

98.62 

1045.44 

aee 

508 

21.94 

96.44 

1082-90 

233 

* 

* 3803 

1078.14 


20 GEN MANUFACTURERS(287) 

21 BuBdng & ConahuotionW} 

22 Butfdng Metis & Merche<32) 

23 Chamfcalapor 

24 Dtvareffied tedUStrtateCIS 
26 Bectrnnfc A Beet EquipP4} 

26 EngmeerinQtfl) 

27 Engineering. VeMdeefl2) 

28 Printing. & Pt* 0 p 0 } 

26 TroBteO 8 Apparel 


188253 
1047.18 
1853-53 
229704 
1799.15 
1881.45 
181900 
230402 
2812.10 
1560 76 


+OS187352 
-05 1053.67 
-Ol 1856-33 
+00 227004 
*15 177755 
-OHB8455 
*03 181454 
+04 229853 
+05 219708 
-04167352 


188156 187450 1B9150 
106709 106010112040 
1857.79 184408 186350 
2289.05 2277,45 215300 
1784.75 178809 196&70 
190157 189250 2073.70 
180609180014169300 
2292.48 229506 1871 00 
2804.78 2802.04 238700 
1574.84 1551.67 189030 


408 5.11 

3.78 556 

402 554 

4.03 4.49 

009 5.12 

4.01 057 

3.15 408 

454 151 

3.07 557 

4.30 601 


23.74 
2409 
23.14 
2756 
2358 
17.89 
2300 

80 rot 

Z1.77 

17.75 


6607 

36.57 

7007 

7908 

62.75 

6108 

6450 

92.54 

77.00 

8159 


963.47 

82557 

87H.67 

101074 

92550 

B9?.an 

1045.14 
112753 
1108.19 

994.14 


30 C0NSUMS1 OOOOSP7) 27^-41 

31 Brswn1e907) 

32 Sftirits, WSnao & CSdarariP) 

33 Food MsmufcctUi0rB(23) ^80“ 

34 Household QoodBfIS) 

36 Hetdm Cara(21) 

37 Phamtawiriicaferia} *S5S2 

38 Totoccom vrmm . 


+05 275150 2775.06 2771.75 274000 
-03 222251223856 223957 199550 
+05 282200 284950 2880138 2639.00 
+05 2281.78 229656 228906 227440 
-05 239014 2364.78 230908 2017.70 
-Ol 157859 15830S 1588.74 166440 
+10 3061.11 3103.13 308509 304150 
+00 375851 3754.12 3733.14 432600 


4-35 

7.27 

1508 11101 

95707 

4J7 

7.77 

1502 81.47 

99205 

804 

801 

18.K 10103 

S5406 

4-28 

707 

15.08 8847 

96605 

300 

7.74 

15.46 B908 

B49.42 

a2i 

3.42 

41.17 4804 

91607 

406 

BJ96 

1881 133.07 

992.17 

5.74 

9.10 

1101 217.07 

882.09 


40 sswicesczio) 

41 OstribulorsPO) 

42 Leisure A HcrteW2S 

43 MedlaPB} 

44 Maters. Food(18) 

45 Retallara. General^ 

48 Support San4cea(41) 

49 Transported} 

61 Other 


190854 +01 1905.60 191508 190603 186500 

260156 -Ol 2504,13 2629.13 264003 205500 

206200 ' -Ol 206306 2085.77 205049 109950 

285003 +04 2644.76 28SO40 2864.72 259500 

175407 *03 174907 176053 1747.18 151200 

160507 +0.1 160406 161903 1604.74 1687.40 

152E5S +0.1 16240S 162852 152609 159250 

tnra ss 2251.62 226206 2252.75 226700 

lorsn «w +1.1 1247.42 124306 124S.1B 119450 


307 

60S 

1808 

5881 

94108 

3.78 

703 

16.12 

8505 

87101 

306 

4.79 

2407 

57.69 

1019.47 

2.43 

505 

2201 

70.14 

99407 

872 

9.13 

1854 

5832 

1054.43 

833 

7.11 

1704 

52.76 

864.58 

879 

608 

1801 

3815 

931.74 

878 

807 

1800 

8701 

887.63 

4.01 

809 

4880 

2863 

108540 


60 imumES(38*e 

62 SaeWdtyOT)* 

64 G» OMbuthnp) 

66 TriecorrrnurtateonsW 

241819 

254509 

195408 

2017.08 

182879 

+00 239891242009 242870 244880 
+00 2537.08 255200 2551 .34 211600 
+00 183700 198901 197823 211860 
+10 199862 201815 2Q32.7B 230700 
-841838161847.83 185108 181880 

. 4J2 
301 
813 
4.19 
507 

707 

904 

t 

7.77 

1306 

1843 89.76 935.92 
12.12 10105 1068.55 
* 11902 91705 
1506 5002 880.18 
814 7903 91901 

eg NON^NANCIALSPn)* 

1657-31 

+0.4 1650.74 1082.63 186003 163002 

894 

643 

1887 

sajfi 

1177 08 

70 FWANCIALSf104) 

71 BantaaOJ 

73 BtsurancoflT) 

74 Llta ABSuranceW 

75 Merchant Banta® 

77 other Ftnandaipfl 

220871 

292605 

125852 

239804 

275342 

188872 

144025 

+00 218874 220108219842 22B50O 
+00 239900 2S2886 289705 2885.70 
+00 124300 124839 125503 142700 
+10 2357.41 237861 238003 256850 
+0.4 274857 274004 2727.12 30+900 
+0.6 1854.06 185840 1B61.01 170500 
1440.15 144804 143859 186500 

409 

4.12 

5.42 

503 

877 

873 

403 

802 

871 

84Q 

7.78 

10.43 

846 

4.47 

1814 9004 
11.79 11809 
12.18 6101 
1507 127.B2 
11.11 97.7B 
14.14 6405 
2801 45.12 

87849 

97874 

92709 

834,46 

100146 

32507 

— — ecaur TMISTSflZH 

272801 

+0.1 272607 273841 273906286800 

206 

107 

5101 

5818 

81864 


89 FT-S&A ALL-SHAREfBSfle 

■ Hourly mowemente 

Open 900 


153701 +00 153039 154003 153803 1524.77 306 605 1709 55,16 121507 


1000 


1600 16.10 rtgh/day Low/day 


1100 1200 1300 1400 

30BQ.2 3078.6^ 30607 30707 30705 30725 3078.1 30870 30853 3068.5 
FT-SE 100 Wn 3637.7 35350 8536.6 3S340 3S350 35355 3938.7 35380 3534.0 

FT- gM M^ ^80 15460 15420 1642.8 15420 15435 15450 15403 16520 1542.1 


Previous Change 



EBdg ACnatrcn 
PhsmaceLrtlcis 

Water 
Banka 

AdflKkWl WonwMon oo 

UnAsrLOne" 


«d1 1 30390 30410 30430 30420 3045.0 3051.7 3049.7 3 

i»H0 1828.1 1832.6 1832.0 18310 18310 18202 1823-1 1 

2945.9 2938.1 2BSBJ 29350 23390 29600 2981.1 2 


9690 

9890 

9950 

-60 

30487 

30650 

3033.0 

+020 

18281 

18285 

18330 

-7.4 

2961.1 

29630 

29360 

+270 


Die ReanctalTnna 



iFT'WThas 
tnafcaO snrerin 
compteti WTte . 

SSHgs 

as .-asa-. 

- - - - FT SWWf 3 “ 


pharmaceuticals group Glaxo 
bounce 10% to 619p. The shares 
were further encouraged by 
reports that a new anti-vtral 
drug being developed by the 
company had been effective in 
fighting Hepatitis B. 

Eurotunnel support 

Caught up in first day eupho- 
ria - direct r unning between 
London and the Continent 
started officially yesterday - 
Eurotunnel jumped 17 to 270p 
amid heavy buying from Paris 
and on talk that several big US 
hedge funds which target high 
risk/high reward issues have 
been chasing the shares. 

Their recent performance 


TRADING VOLUME 


■ Major Stocks Yesterday 

VoL Cfcamg Doy» 
OOOfl DrtOB dianat 


3ft 

ASDAOraupt 
Abbey Natfcmalf 
Albert Ftanw 
ABad Domecqt 
AngBsn Wtater 
Argoa 

xisst 

Abbdc. Brt. FbodKt 
Aseoc. BrtL Porta 
BAAt 

BAThdtt 

BET 

Biro 

BOCt 


BTRf 
Bm* * 


BSMCt 

BluaClrrfnt 

Bodher 

Boorsf 

Bowntwt 
BrtL Aeroopacaf 
British Amrayaf 
Britt* (tost 
British Lana 
British Snoart 
Bunti 

Bullish Oaamtit 
Bmn 

Cable & Who t 
Cadbury Schweppasf 
Oandant 
Carttnn Comma, t 
ConnwytAa 
Camv Untorf 
Cookson 
Courwtitist 

STRuor 

DMns 

Eastern BacLt 
East Mdand Beer. 
Bactroconsa 
Big Chha days 

Enmrpnoo Oft 

Euntimnd UnKa 
FN 


IM +*} 

11000 M*t +1*1 

1000 421 **h 

203 43 

220 507 +4 

5» 502 -3 

B9 330 -1 

2000 2f» L > 

5BB snh 

357 S48 

«4S 288*2 

2000 405*2 

1000 450*2 

1000 10B*3 

4M 353 

202 710 

•000 410*2 

022 305 

4000 307*2 

4000 306*2 

4000 710*2 

3000 005*2 

477 543 

1,000 301 

37 409 


«a*i 

*1 

■ 6*2 

«*j 


2000 

1.700 


5)3 +5V 

446 +6 


188 

BOS 

2.400 

1000 

2.700 

731 

15 


Fontgn 0 Col LT. 
Fortof 

Gon. Acddemt 
General BecLt 
Qteaot 
avnHsd 
Grenada! ^ 
Grand MM. t 



510 4fl3*2 r2*2 

4000 3B6 -Oh 

3000 294*2 +3 

1000 363 +1 

15.000 tOMg .| 

318 643 

1000 70*2 

5000 303*2 
650 440 

274 
878 
190 
552 
252 
461 
421 

40B 1003 

579 181*2 

07 BOS 

230 005 

193 «66 

023 348 

260 670 

1000 270 

503 163 

4000 127*2 

133 
233 
504 

1000 262*2 

4.100 SIB 

268 J40 

2000 511*2 

409 
554 
101 
ez a 

4000 4»*2 

540 726 

328 346 

7.100 232*1 
160 
293 
170 
320 
771 
425 
501 
472 
550 
153 
SIB 


431 

529 

132 


1000 

024 

307 


_ jbSponcarf 
•Man* Beet 
Mortem (WmJ 
NFC 

NoMem Baflkt 
National Pooerf 
Neal 

North West Mwert 
Northern Elect- , 
Northern Foodat 
No raab 


PAOt 


T wraOmt 

Pnateauri 

f«*Ct 

FTTZT 

Heed 

Rank Ora. t 
HacUR STCtitmOt 
Mandt 
Rood mn.t 

22S3T 


564 
2.600 
47 

30 

2000 
1000 
2000 
013 
IS 

1.400 
2S0 
108 717 

831 430*2 

641 331 

3000 580*2 
1000 146 

31 723 

0000 1E6<2 
2000 196 

450 417 

14 139 

6)6 
401 
785 
140 
179 

2.400 521*1 

1.100 485*2 

731 245 

140 537 

60 017 

1000 205 

06 B16 

331 

633 
187 
551 


♦7 

-3 

« 

+1 

+10 

♦2 

-2 

-7 

-4 

~2 

+17 

43 

+1*7 


+ 10*2 

♦1 

■*>2 

+2 

-1 

♦1 

♦3 

42 

♦7 

42 

44*, 


+10 


2000 

110 

7,500 

731 


441 
1 400 
313 


1.700 325*2 
102 1001 


1.700 

114 

2000 

068 

527 

665 


RKBkScocWt 
Royal maaanoet 
Sattetaavt 
EctadMT 


a Now t 


ran 
247 
410 
564 
408 
773 

234 

2.100 474*2 

2.100 17B 

1000 448*2 
1000 202 
3-300 406*2 
61 


321 

*30 

1000 

1.300 

397 


- »t 
Sodgwidt 
Seeboonl 
Severn Trerat , 

Shea Tnmepont 
Sobol 
Stough Eats 
9n*h(W.iq 
Srtni Nephew 

Srnta Beariwrit 

SmM O w xJum ti ua.t 2000 

SnHtalMB. 38 

Southern Hect-t 977 

Soutti Waiee Elect 18 


602 
326 
354 
107 
147 
435 
182 552 

4,400 702*2 
724 550 

840 220 

1000 403 

BIB J44'j 
4000 C30 


iWHLEta. 

Seurnom Wtur 

Swrianl Omnd.t 


Sun AKencet 

TW 

H Cneari 
TSBt 

Tarmac 

Tria&Lyto 

Taylor Woodm* 

2***t 

ThomeoWatat 
Thom EM* 
nnttttrait 
UaMgnt House 

Unjour 
UiriSwt . 

UHlatl Becutet 
UW. Nwrjpapin 
VOttatordf 
Wttriaag (SGTt 
Wofcomet 

‘ i Wal*r 


480 
017 
611 
486 
7BB 
584 
207 
215 
333 
218 
371 
227 
120 
426 

see 120 

5.400 240*2 
453 483 

1.100 1000 
2000 251*1 
543 01 »j 

363 358 

795 1124 


1000 

21 

1.100 

32 

206 

2000 

2.100 

189 


385 

522 


313 

529 


6,70) 217*2 
324 644 

324 680*2 
26 656 


Whmetuff 
WWnrra Hdgs-t 
MHgCwKn 


WDNalari 
YtMoMra Bbcl 
lortcrtn Water 
Zanocot 


167 

1JO0 

1.400 

256 

781 

240 

451 

39 

1300 


300 

547 

347 

136 

135 

772 

743 

52S 


-l 

♦4*2 


♦13 

+*2 


-2 

♦4V 

<3 


s 

+1*4 




♦7*2 


♦C*2 

-1 

- 1*2 


♦ 1*1 

+23 


-6 

'1** 


♦ 1*2 

-2 


-h 

s 

♦1 

-3 

-*2 

-3 

♦3 

-1 

+6 

♦3 

-2 

*9 , 2 

|3 

* 


Baud an trading rakimo te« o i&ecf m of map* 
sooaftee dee*) through U» S6AQ o/swm 
mterday uns 400pm Tmttos ol or* oifcii « 
■non am nutdod dtwn t irwawm an FT-SE 

100 uidu consmiiHti 


has led to head scratching 
among London analysts, with 
the group looking Increasingly 
set to miss its own severely 
downgraded revenues forecast 
for this year. The investment 
approach in France has been 
less fundamentally based, how- 
ever. 

Turnover in Paris yesterday 
was 3.75m shares, more than 
three times the London vol- 
ume. Eurotunnel, under 200p 
less than five weeks ago, is 
now 5 in excess of this year's 
rights issue price. 

British Steel active 

Paying little attention to the 
better than expected interim 
results. British Steel put on a 
penny at l59’/.p with a lively 
14m traded as the market con- 
tinued to peer anxiously ahead 
to the next cyclical downturn 
for the group. 

Having outperformed the 
market by more than 50 per 
cent over the past year, the 
shares have hit the buffers in 
recent weeks, lagging slightly 
on a one-month view as fears 
for a cyclical profits reversal 
sometime in 1996-97 have taken 
hold. 

Cable and Wireless was mar- 
ginally easier at 383 Vip as wor- 
ries about the company's Mer- 
cury unit continued to dog the 
shares. There was 5£m turn- 
over yesterday as Robert Flem- 
ing Securities reiterated its sell 
note. 

In contrast, mobile commu- 
nications group Vodafone pow- 
ered ahead in no lees than 6.7m 
shares traded, rising 9% to 


NEW HIGHS AND 
LOWS FOR 1994 

NEW KH2H8 (18). 

BULOMG 0 CNSTRN (1) Pocttns, 
DISTRIBUTORS pi Rnufcst, B^CTONCB 
ELECT EOUPfB Ercaaen M Mflprun Power, 
ENWNEERIIIG (3) Baynes (C*. Spom-Sarco. 
Wsftran. GNO, VEMCLES (9 Honda Motor, 
EXTRACT1WE MBS 66 Qtietta iilu Manna. 
RaiMon UHn0 . MVESTMENT TRUSTS (Q JF 
Am Select LEJSunE 8 HOTELS fl/ London 
CUte. UFE ASSURANCE [1J Lbeny Lite Amoc. 
of AtacaL OB. EXMURKIKM A PROD (1) Wl 
Peroteun. PHARMACEUTICALS (U Astra. 
RGTALERS, OEMBtAL 0) QoUsnttn, 

support sews fi) note a nom 

AMERICANS (1) Amor. Cyanmd 
NEW U3WS (837. 

GILTS tn BREWERIES flj Kirin. BUILDING A 
CH&IDN M AUEC. Do 0Wp Pit, Bool ffl. 
Gtoaoon 9AH. BLOO MATES C MCKTS (2| 

Britah Dredging LAwtind Qpc Pit. CHEMCalS 
(2) BTP. UriKAMt hh, DI8IIWUT0RS R 
QriTyna Dlplonra. HMdbn Ouldca, SS> lntn_ 

Do pna, WhataKrie FUngx WMs. ELECTftMC 0 
ELECT EQUP (I) ftettom. BWU mU HO (q 
Aril S Lacy, QBE liA, Morgan Cradble Tttpc 
Prt, ndadnl Woorgnth. EXTRACTIVE MDG 
R Gold Minu Aiieirrila. MniteL Orion Re«, 
HEALTH CARE (4) AAH, MMan UL 
Cn+racra. PttianecMcs. INSURANCE Pi 0B. 
Uwmdu Lanten. MVEBTNMT TRUSTS pfl 
INHBTMEMT COWAMES (1) AAF tate- 
LBSUHE S HD1H5 (S Alpha Afepona, Bur t 
WAT A. Kiandc KHp PH- MEDIA (0 IMand feid. 
Utah iraCHANT BAMCS 00 brings Bpc and 
M, Dongs Non-Gum. M., am 
FINANCIAL M Exco. M>um tiuttHB. Ocariw 
Cmrid. Toary tew. Union, PnTNGw paper s 
PACXO te Terr, BcMmg. Swtf. PHOPHTTY » 
Auk Prop. Slip Or PI, Cantfl Prop-. Ex-tentia 
7Hpe Or 2020. London MV OSm Prop, PST. 
Soiahted Prop, Do Wife- RETMLERS, POOO 
(11 QanL retailers. GBCRAL (a) Finn Ait 
Oevttia, tortrUg a Rna Aria, mrn SPTCTN 
vmei A COBB a MrittWw Cteh. 

Merrydoam, SUPPORT sgws (3) Hogg 
Ftobumon. JBA, TEXTILES A APPARB. CH 
Badsnan W. CNttwM Mwa- TWAWPOWTfS 
London 0 Overseas Rra^ttere, P4O06M, 
AMERICANS (3) Dens Coip- Honeynei. 
Tanmca 

217!4p in advance of what is 
universally expected to be a 
bumper set of results early 
next week. 

Consumer products retailer 
Boots attracted attention after 
it confirmed that it bad agreed 


in principle to sell its pharma- 
ceuticals division to BASF, the 
German ph* mi rale and drugs 
group, for £8S0m. 

The company was generally 
thought to have negotiated a 
good price for the sair, 
although more optimistic ar> 
lysts were left slightly disap- 
pointed, having anticipated a 
sale price £50m higher. 

The move ended months of 
speculation over what one ana- 
lyst called “the world's worst 
kept secret”. After an initial 
retreat, the shares closed at 
513p ex-dividend as analysts 
turned their attention to how 
the group would use the pro- 
ceeds of the sale. A share buy- 
back operation was seen as the 
most likely move. 

High street bank Lloyds 
jumped 13 to 580%p as dealers 
said Kleinwort Benson was 
poised to release a positive 
note on the clearer. HSBC rose 
7 to 728p on a James Capel 
r ecommendation and Bar clay 
was restrained by a repetition 
of UBS’s long term caution. 

Precious metals, car parts 
and materials technology 
group Johnson Matthey put on 
10 at SSlp as analysts reacted 
enthusiastically to a possible 
merger with metals and plastic 
business Cookson Group. The 
potential deal was described as 
an important strategic tit. 
Cookson firmed 1 to 252p. 

British Aerospace gained 2% 
at 463%p following news of a 
potential $lbn aircraft order. 
The group has won a $420m 
order for 25 Jetstream 41s with 
an option on a further 35. 

Talk continued that Unigate 


was p lanning to buy unlisted 
Dairy Crest, the UK's biggest 
cheese maker. Unigate shares 
eased a penny to 358p. 
although analysts warned that 
such a takeover could spark a 
Monopolies and Mergers Com- 
mission investigation. 

Wm Morrison Supermarkets 
saw turnover of 7.5m as the 
shares hardened a penny to 
140p. The day’s trading in the 
stock included a line of around 
2m shares switched from J. 
Sainsbury. which closed at 
419%p xd after trade of 33m. 

High street retailer W.EL 
Smith closed 3 lower at 453p, 
with Nomura said to have 
reduced its current-year profits 
estimate by £5m to £140m due 
to difficulties in trading. Nega- 
tive press reports on jewellery 
and luxury products group 
Asprey saw the shares surren- 
der U to 146p. 

Chemicals group BOC 
improved 6 to 71%) ahead of 
figures expected today. 

However, much of the sector 
was restrained by concern over 
companies' inability to pass on 
the price of raw materials to 
customers following Wardle 
Storey’s figures. British Vita 
retreated 7 to 222p. 

Monument Oil & Gas 
received support from an 
in-depth analysis of the sector 
jmblished by Smith New Court 
The shares were firm at 69p. 

MARKET REPORTERS: 

Peter John, 

Joel (Gbazo, 

Jeffrey Brown. 

■ Other statistics. Page 26 


LONDON EQUITIES 


UFFE EQUITY OPTIONS 


RISES AND FALLS YESTERDAY 


Rtaas 


Snptri 


Option 


CM*- — —Pal* 

JM Apr JM Jte Apr Jri 


ante 


— Cate PUs 

Ho* Fob Mar Mu’ fat) May 


AtedDnc* 550 51 GOV. 87% 4h 11 1955 

("587 ) 600 17 SOW 30 23 30V, «2>> 

tag* 2B0 IB M 29 0M 14 13H 

f*3» ) 280 7 Ml* ISM 20 25 31 

ASDA III IH l» IM ID 4 5 

(-05 ) 70 2 4H 57M9M10 

Brtt Always 360 18M 30 Wt 15 21 28 

(*385 1 330 7 17M ZJJi 33M 3BM 45M 

JWWmA 330 3715 48 SZK K 13 171* 

|*4ia J 420 18 29 3GM 17 2SW30H 

Bools 500 28 41 49 1DH IBM 2311 

T512 ) 550 7» 17M 25 41W 44 50M 

BP 390 35M 42*5 48% 4» 10M T4M 

[Ml 7 ) 420 IB MM 32% 14% 22% 27 

BUM 3ed 140 IBM 23 28 2 4 8 

H5B I 160 8 If 15 9% 12% 15 

Bass 500 47 S 5BW 7% 14 IBM 

(*543 ) 55Q13M 24 33 31 30 44 

CtifclWn 380 32% 43% 50 8 15H IBM 

raw | 390 (5% 28 94M 21h 29% 33 

Gounauhts 420 42M 53 60 5M 10 IBM 

460 17 30 37% 21 26% 35 

38 - 15% 31 - 
18 -46M 83 - 


220 13 17 20% - 5% 9% 

240 1 7 10% 8 15% IBM 

134 12% - - 

154 1 - - 

180 19% 29 29 

ZOO 3% 12% 17% 


CZ32) 
Lasmo 
H4 SI 
Lucas Ms 
HW) 

? 8 0 
n*32 ) 


PBB 1 
Prudential 

r»4> 

RTZ 
f834 J 


("459 1 
CanmUnUi 543 27% 
[*551 ) 502 8% 


("408 I 
Aqnl knee 
(*290 ) 

Tbso 
(*246 1 

vodotane 
(*217) 
Vitas 
(*348 ) 
Option 


% - - 

9 — - 

- 3 BM 

4 10% 15 

BOO 34% S3 83 M 11% 28 

850 4% 24% 37 19% 32% S3 
180 7 12 17 1 S I 

200 - 4 8% 13% 18% 20 

300 M% 33 38% % 8 11 

330 3 14% 19 8 16% 2SH 

BOO 37 81% 72% 1% 15% X% 
850 5% 32 45% 19% 3BM 54M 
480 12 30 38% 3% 17 31 
500 % 13 20 33% 40 57 

280 13 2B 30% 2 11 17 

300 2% 18 20% 11% 21 27% 

Z40 7% 17% 23% 1 8 14 

280 1 8 14 14 19% 25% 

200 17% 23 30 - 5% 8% 
217 4% 13% - 4 12% - 
325 21% — — — - - 
354 2 - — 9% - - 

Jan Apr Jri Jan Apr Jd 



49 

13 

B 



3 

11 






19» 

129 

373 



39 

109 


78 

86 

330 













Others . 

._ 65 

29 

30 

Total 

tz* 805 

478 

I486 


TRADITIONAL OPTIONS 

Rrei Daatags Novwnber 7 

Uat DeetttoQa Nowerabar 18 

Cotta: BqNaura. Bateumal Wta, Rotach. Lfatar. Tlritow CM, Wavortoy IHig, 


Expiry 

SaUemant 


February 0 
February 23 


LONDON RECENT ISSUES: EQUITIES 


IQ 750 41% 55% 88 16% 34% 41 

|*7B8) BOO 17 31 43 42% 82 67% 

KtogfelWC 460 29% 43 47% 12% 23 29 

PCI ) 500 12 25 29 34 43% 51% 

Lan) 5604 600 28% 40 48% 10% 16% 27 
(*B17 ) 650 8% 18 23 42% 44% 57 

Marks 6 S 390 23% 33% 39 8% 13% 19% 
1*401 ) 420 B 18% 23% 24% 2B% 34% 

NaMMri 500 40 48 55 10% 26 31 

ran > sso 17 24% 32% 36% 54% 58% 

Sarcfiuy 390 29 41% 47% 8 14 20% 

P4W } 420 12 25 31% 21 28 35 

Shel Trans. 700 24 34% 42% 17 41 36 
(-701 1 7S0 G 15 22 50 63% 67 

Storehouse 200 18 22% a 4% 0 7% 

P214 ) 220 6% 11% 15% 12% 15 17% 

Tratripr 80 5% 8% 10% 4M E% 7% 
Pttl | 90 2 4% B% 10% 12 13% 

Unlew 1100 45% 88% 78% 20 38% 49% 
P11221 1150 21% 41 54 47 KM 78% 

Zeneca 650 41 K STM 89 22 40 47% 
raw ) 900 20 33% 46 50 58% 78 

Option No* Mi Hay ttw Ftb May 


BM <75 31 42 - 5% 10% - 

|*49S ) S00 18 27% 35% 15% 20% 27 

Items ntr 480 41% 92% BO 5% 11 20 

P481 1 500 17 2B% 37 20 27 38 

option Oac tear Jua Qac Ksr Jta 


Giand IM 

390 

2D 

29% 

37 

1% 

13ft 

17% 

r«oe > 

*» 

3 

14 22ft 

14ft 

30 

33 

LMtinokn 

14(1 

13M 

18 

a 

— 

3 

7 

1*153 ) 

IfiO 

1 

B 

12 

a 

lift 

17 

(JUBUCufe 300 

13% 

Z4M : 

Bh 

i 

7 

16 

1*312) 

330 

ft 

16ft 

15 

19 

23 

33ft 

Optim 


Dae 

Mar 

Jmr 

Oac 

Mv 

M 

Ham 

tan 

13 

IBM! 

rift 

3ft 

7ft 

9ft 

nwi 

130 

8 

13% 

17 

B 

12ft 

14% 

OMton 


Ha* 

Ml] 

■ay 

Bov 

Feb 

Way 

Brtt /taro 

460 

12% 

36% 

49 

10ft 

27 

39ft 

(*462 ) 

500 

1ft 

20% 

32 

39 

51 

S3 

BAT tods 

<20 

2SM 

42 . 

48% 

1 

B% 

19% 

1*447 ) 

460 

3 

» 

a 

16 

25% 

40 

BTR 

300 

7% 

18% 24% 

2ft 

10 

17% 

T305 1 

3V 

- 

7 

12 

25 

28 

36 

an TMcom 

360 

27 

31 

37 

- 

8% 

10 

nsej 

390 

3ft 

13ft 

20 

7 

19ft 

23 

tedburrScn 

420 

19% 

32% 36ft 

1 

9 

17 

r«a i 

4® 

% 

1ZH ■ 

IBM 

a 

29 

39 

Easam Bar 

BOO 

15% 

4Zft 

62 

12% 

45. 

55% 

caxi 

830 

1 

2B 

«z • 

«7M 

73% i 

S3% 

&*ness 

460 

IB 

24 31% 

3 

n%: 

22ft 

C465 ) 

500 

- 

8% • 

14% 

35 

36% 

48% 

GEC 

280 

4% 

12%' 

19% 

3 

11 

13% 

f2B2 ) 

300 


4% 

11 

19 

23. 

25ft 


Abbey Nall 
1*421 ) 
Ansffitt) 
PZ8 J 
Barclays 
1*805) 

Blue On* 
P301 > 
Brmsti Gas 
C293 ) 
name 

nm ) 

HDadown 
H76) 
Unrtn 
rt56 ] 

Naif ftwa 

r<9o ) 

Scot Pomer 

rasi ) 

Saaia 
P1D7 ) 
Forts 
P233 ) 
Tamac 
H2B) 
Thom EH 
P1001) 

15H 
r227 1 
TomWts 
P219 ) 
WiAcome 
r«85 > 
Option 


430 14% 28 31 11 » 30 

460 2% 10% 15% 39% 51 58 

25 «% 5 8 % IM S 

3 0 1% 2% 3% 2% 4 4% 

600 23 41% 50% 13 3l 39 

650 4% 29 29% 48 51% 68% 

300 12 21% 27% 6 14% 23 

330 2% 9% 15 30 33 41% 

200 18 29 31% 2% B 14 

300 6 14% 20% 10% 16 24 

160 IB 21 2EH 3% 9 12% 

200 B 11 18% 12% 19 22% 

160 18 21% 25 % 3% 7 

180 B 9% 13% 7% 11 17 

140 18 22 27 1 5 7 

160 6% 11 18% 8 14 18 

<60 34 47 57 4% I2J4 SSJM 

500 11 24% 35% 22 30 40 

330 27% 34% 43% 4% 13 IB 

380 10% 19 28% 17 27 33 

100 9% 12 13% 1 3 5% 

no 3 a% • 5 7% id 

2M 18% 23 27 3 8% 11% 

240 5 U IB 12 15% 21% 


raue Arm 
rice paid 

P UP 

MM. 

rap 

(Era) 

1994 

ttQh Low Slock 

Close 

Price 

P 

+/- 

NM 

dfrv. 

DM. Qra 

cm. yld 

P/E 

net 

_ 

F.P. 

002 

6*2 

4 APTAWmtiL 

8 


_ 

. 

_ 

_ 

_ 

FA. 

170 

98 

70 Abtrust Latin Art) 

88 

-1 

_ 

- 

_ 

— 

_ 

F.P. 

2.12 

63 

S3 Do warrants 

53 

-1 

_ 

- 

- 

- 

- 

FA. 

110 

197 

180 i&Arfara Prma 

186 


02696 

at 

TA 

109 

IDO 

FA. 

1780 

S3 

88*2 BZW CominodUee 

88 


- 

- 

- 

- 

_ 

FA. 

160 

47 

39 Da WHS 

39 

-1 

_ 

_ 

- 

_ 

- 

FA. 

481 

92 

85 ’JCeiuia 

91 

+3 

- 

- 

- 

- 

280 

FA. 

300 

287 

2BD ChurchK China 

285 


RN908 

20 

40 

130 

63 

FA. 

181 

68 

65 Ennemlx 

88 


RN0.71 

50 

1.4 

80 

— 

FA. 

91.7 

155 

108 Rtteric CH* 

147 

-1 

HND.75 

20 

00 

490 

115 

F.P. 

340 

126 

ill Games ttaricafnp 

112 

-2 

RN40 

20 

il 

100 

- 

FA. 

101 

35 

23 Group (% Cap Wta 

23 


— 

- 

— 

- 

- 

FA. 

280 

62 

56 HamDros Sm Aslan 

58 


— 

- 

- 

- 

- 

F.P. 

2.70 

30 

27 Do Warrants 

27 


_ 

- 

- 

- 

- 

FA. 

29.7 

SB 

90 INVESCO Koree C 

99 


- 

- 

- 

- 

180 

FA. 

184.4 

223 

205 Men Pamrawit 

216 

-2 

uN9.0 

20 

50 

70 

- 

FA. 

584 

493 

475 PitjflBc toe A/L 

487 

-2 

— 

- 

— 

— 

135 

FA. 

5B0 

149 

136 Senta 

145 


RN3.8 

10 

30 

230 

TIG 

FA. 

2200 

125 

117 TUG 

124 

+1 

WN30 

20 

30 

170 

170 

F.P. 

SOS 

173 

188 CeB 

170 


RN5-44 

22 . 

40 

(10 

- 

F.P. 

801 

62 

67 Whitchurch 

60 


RN10S 

30 

20 

120 


RIGHTS OFFERS 

Issue AmouV Latest 
price paid Renun. 1994 

p date High Low Saocfc 


dosing +or- 
priee 
P 


120 11 
130 5% 
1000 20 
1050 8 

220 12 % 
240 4 

200 21 
220 7 

680 38 

TOO 14 


18% 19% 2% G 9 
11% 14% 7 10% 14 

43 87 19% 37 47 
22% 44% 82 67 75% 
18 «% 4 11 14% 

BM 13 15% 22% 28 
25 30% 1 5 8 

13% 19% 7% 13 16 
58% 72 17 31% 45% 
35 48% 44 57% 72 
i Agr Jtf Jan Ap Jui 


20 

NS 

9/12 

4Jawi 

lpm 

Biriera 

1pm 

310 

M 

20/12 

4ipm 

25pm 

Kenwood Appl 

25pm 

27 

M ■ 

28/11 


2*2 PP* 

Martin tod 

3pm 

500 

NB 

12/12 

50pm 

16pm 

Matthew dark 

18pm 

28 

Ml 

22/11 

1 *pm 

Jdpm 

Novo 

•4pm 

5 

Ml 

15/11 

2*2001 

*5 pm 

■pUidon Square 

J 2pm 


Oam 600 38% 54 88 18 35% 42 

(*615 ) 660 IB 31% 45% 46 63% 6BM 

KSCTSptt 700 52% B8 82 17% 39 51 

P727) 790 25% 42% STM 42 88 78 

Raters 480 27 38 47% 12 23 2B 

(*470 ) SOO ID 21 29 35 45 49M 

Option Hos fab Way Hw Fal> Hay 


AH+flqa 

nrai 


ISO 18 23 26 - 3 8% 
180 2% 11 14% 4% 10% 15% 


* UrKkrtytog aeoatty price. Plenums Man am 
toed cm MttfcmaM prtew. 

November 14, Total etnmacu: 3O06OCrilK 
17,748PiflK 12012 


FINANCIAL TIMES EQUITY INDICES 

Nor 14 Now 11 Nor 10 Nor 9 Non 8 Yr ago *Hgh Torn 
Ordinary Stare 2379.7 23850 2384.1 2378.6 23480 2346.4 27130 22400 
Ord. d hr. yfatd 
Earn, yfcl % tul 
P/E ratio rw* 

P/E ratio nl 

for 1904. Ordtoay Stae todss Wtoe e e nwMuk n Htfi 27130 24S04; (era 49.4 sam/*o 
FT Orrimn* 8taa index base dan 1/7/33 JCraracM vafuee- 

OtYtinory Stare l»wtjr ctangw 

Open 900 1000 1100 1300 1300 1400 1500 1600 Ugh Low 
2388.0 23880 23684 23610 2362^4 2362.4 2383.1 23880 2370.4 2379.7 2360.B 
Nov 14 Nov n Nov 10 Nov 9 Nov 8 Yr ago 


405 

407 

404 

40S 

AM 

306 

AJtn 

043 

6.30 

804 

600 

801 

cna 

402 

641 

302 

1804 

1803 

1808 

1801 

taio 

27.11 

33.43 

16.94 

17.9B 

17.78 

17.93 

1706 

17.65 

26.14 

3080 

1709 


FT GOLD MINES INDEX 



Nov 

11 

«Ch| 

radra 

Nw NO* Year 

19 9 ago 

tasdhr 

1UU% 

52 weak 

Mgh Low 

Sold Wn** tone* (34) 

209105 

-ai 

2D9U0 20KLS 218506 

207 

239709 176202 

■ BtsloiBt tadtaa 

Attica (161 

Ausdatata (7} 

North America (Hi 

3389.12 

268807 

1618.26 

+0J 

-10 

+00 

337901 3426.73 288409 
273306 271B06 225000 
161602 161148 196409 

4.08 

105 

003 

371107 2304.45 
301309 217108 
2039051468.11 


SEAQ bargains 25,668 23 J87 24,490 

Equity turnover (Emit - 10800 1130l2 

Equity targatnst 27^0 29.443 

Shore traded (ptijr - 4354 G21J3 

TEaducIng hna-martet burinm and mmbbs Uimmt. 


26.796 22075 28023 

1678.7 1072.1 10500 

29,196 24013 32028 

613.1 SS70 472.1 


CopyrqM. Tte FtoanQU Herat Ltottrid 1994. , swii 

Plane n bny+j+i. chow nmer o( computes. Bess U6 Dotan. R““ Vriuw 100000 31712/82- 
Preoucecsor uou Man Vxtoc Nov 14. asr.4 : aa/e ehangv +10 pom®. Year agac 2412 T ttettri. 
Leteri puces ware mmStot+a fee ttfe nfrion. 


' A Prime Site for your 
Commercial Property Advertising 

Advertise your property to approximately 
1 million FT readers in 160 countries. 

For details: 

Call Emma Mullaly on +44 71 873 3574 
or Fax: +44 71 373 3098 


T7TZ' 






34 






















































































r xvjbv r JSfh ’' 


INANCIAL times TUESDAY NOVEMBER 15 1994 


35 




i 


i- # 

v 


WVESWE »T trusts -C om. 


Kg? ’SI 

S&: 1 ^ 


LEISURE & HOTELS -Cont 


LONDON SHARE SERVICE 


OIL EXPLORATION & PRODUCTION • Cont PROPERTY - Coot 


"5* ■«» firs hav 


199* MU YU 
i tow CuCm O') PjI 


- 966 -58 Compare nr STB *1 *3H 305 761JI 27 186 TuBow. ... _ 


Wnatan.ntlirH a? " 

Pttmtttnhi far! 5*“ — . 


S “■ S « 2*0 

IwTltfB. M «q 206 f(| flte 

*&=■ ,E -• mo 7b - 5 


ru m ,I K ' “ Cntvanll£ts,.YN^ 14 

enema— ffSz w .... 

§ jIk « 12s* -u owdudyo ...#c 285 

gc - - - EmDbwyFFi ..Jtr IIS ..... 

O %, “ *5 -27 EllOClM.. — W -1 

sol nS §flrape*l»— jc 2b ... 


sisu- - TiotaiK .. itin 
799 m lai 48 SB U d Enwgr... _ AG 

281 209 IM* 1 Ja su itequMftmn. 

*213 78 SHU - - lftctwto Peon 


iw> " cnwMuai.. -ta. _ a *4 ... * *T* ■■■# — - 

» a si? K23&*-*® « — ■ « *■ *? “ ™ 


Price - «gn 

uw CapEm irs P<E 

40 b - - «b 

19b 

709 - - 

lb 2b 

lb 

3,12 - - 

is a 

14 

5*6 - - 

81 -«* «b 

54 

47.2 - - 

4b +1 7b 

4‘I 

7*9 - - 

70 no 

ex — »b 

28 

£30 

1322 - - 

19* 195 '- 


♦ » 

mas Price 

— 4H a ... 

25 _ 


1» HU 
nuh law Catfn 
»b 14 MO 
31 22 483 

63 SI TUI 
40 a ui 
821, 239 215.4 

■2BS 238 1118 


£ s a*j si 3 .si’s li 

K5PHbEr“"js n .._ aa 14 - - Ftenitaw. . «n aso » ms as u 


OIL, INTEGRATED 


15B “ M - 703 1.3 Font ."..55 23M 

is -■ » » s«; as v* 

go— _ sq _ ™ M - - Craimb +»“ SMI. -31. 


245 4BU U 16.6 
MOb 2.197 40 270 


29 ... 

!»1 -.. 


Ow 8 MB far-. Tor £2 — ,17 13 

WtarmU *7“ ■•-- 147 91 

ZerofflrPf.^ 1B ,: 7 • 40 u 

Ml «M Cana.. « — ’«?£ '<» 

Wa Cap 1999__ 1 “j- 118 85 

**"“&« -1C % ->* * a 


wa cap 1899 ™ SS j: ’IS 85 iu 

WSMem^S.NC WZ J a - »4 

Wararta _ ... ‘S • 170 11B o 1U7 

10*9 Marc } f| — .77 Ji _ _ 

Can. = JJi — 127 112 in» 

SSwiH~.;^.T 2SU — 1*« ’IS - 1651 

o.smidPit u iS.7 « 22 _ 

SffpEfcjr ,b & -’= i« 40 - 

Cm. = 'S - ■ H3 106 ibj 

w£a*‘‘.;~ *2 ”? 75 . 117.7 


(S 33,4 l£ 2B.B MftWfcun-riCOMtia *4 *37 b 340 23H 

S uJ u . Burra* Ci:®& ilO 643id -14 m 811 U 

7S M ffli pevrort* EZBJi +>< *£31^ CWi 17.' 

lb §43 4 9 - 637 ViS +Jf E43V £3S{| 44i 


Boui* End 7txl *108 72 <3.4 

iDATCn Bratfort. — . . ttQ in *1 276 177 2923 

lK * T£n BrtgJiEUM — +L_r 107 137 103 M9 

me. *» R M VSSt^. ^ Si S mR IS 

94U -14 9W 811 1388 41 168 ImS " eu 

da I? :E-C=i 3 S? 


.:Z^ ^ SJ 


RETAILERS, GENERAL - Cont 

♦ nr 1994 MU 
Hah price - Ntfi ton CwSm 

am xm 18B „ neP* 1S1 1 * 4U 

TsSSnra - tfc lG7d MB 146 iCtts 

He (to. _IC 134 *4 173 |I4 fill 

mmsSBn. 1C 8 ■»% 5 1.74 

veedocmLuay.JC BIB -3 53B 384 3,994 

«W LlC 30b d 76 30 «U 

VMM lean* ^JIC SOU — -Wj S 693 

Wpewto. ,+H 155 *195 )38 0M 

SPIRITS, WINES & CIDERS 


TRANSPORT - Cont 

notes Piles 

waev Dads .4110 381 . 

KFCVSj TOri . 

WHBtEqiMl.3tMr 90S 

NortUlE N 119 . 

Ocean So «□ 248 . 

Ocammaoaa-«HG 64U . 

JO 63M * 
205 . 
lieu 


- KZtiXZ-ji ,7*3 mm TE u ftt ^ » S| RESf3Sfr«Sg2 

. 6 GR- - ** S5U 79 48 734 U - MU ~U 9l4 81 1«* 41 161 g^Sik i«E3 lB3 TBS I# 

4 - - Crasada tfrZ S«b -2b EBB 475 2371 22 202 ,* S?ll II™ fachM* N 3B»> 42b 18 

- 33 7 27 0 7bpCvPI 1BO>i -1 22*b 1Mb SM3 49 - ^P| ®W *J| fg? SJ “ SSIT. *WO 91 -1 -lia 98b 

- - QeupeOiuEeanjiG 100 _. lia 95 18J - H5 S2Lc , HK"“rt , ¥Hf "V S Sa! 3 ??? I as L... IK.: 97" ..... 112 b? 

3 98 7 58 HM£sooits*t«t: 41 Ml _. 89 34 193 83 60 )SiiSttS£e' D mV ’« S52 f*S H * Can6B«_-**ttf IQS . . -te07b IfiA 

- ftmo, M 180 218 178 149 &Z 15.7 SmSwtW? 9 ™ * Fi nan/ ™q*J JW li «T C^aaawCmmC an -2 ffl 191 

“ Uspnaians A 138 *7 148 108 323 32 128 •- 9 ™8|< - !w mPs *2*1 M 31.1 rvmr um.cn ?11 


-iji UI9.I I 

-is C77 


Braun ta -ftO 1B4nt *276 177 4284 

Snstoffll.— M 391, 42b 19 337 

Bmtml *tafO 91 -1 in B6b 2703 

as .Jot. 97a 112 07 960 

Cmfifleo Jf4toM 1428 . . Wfe >35% 847 

CspUtSBOflCtraeaC 203 -2 229 191 7383 

Canon U 313 -5 32s 213 627 


146 

*2 BOB 
*2 642 


ffiSTLLV.T ’S — 

aS”— *£ m 

~ ?S 


- Manual BIT 6378 .._ 702 

- ttanoannOri«wS_r 79b tib 199b 


- WwaS 2b **b 2b 7-22 

U MJKMaH»o_lc 13b 19 13b 3Z.7 


539 77.7 4.1 A 

741, s»3 40 m5 OTHER FINANCIAL 


Wl w 193, - -SS r. 'Sb 23 wwure 

if 1 ■ ,,7T 3SJ MJBiaaHjwo_ic 13b If 13b 3Z.7 - - 

btj‘ - - - Vartan ftC 6M — 87 34 204 60 164 Males Puce 

MS 290 .? Cv On 9 6701 ._tlttbH — 04SI 2 C102b 749 - - »«lfan TmsCffllG 92b 

» H? .it 1 "sar.^sp ’g -- -s m Hussast— ■■ - 


KN JOB __ icA - 96101 etSBijia «145b C1D2b 749 - - AMnfan Tnot^ttO 82b 99b 72 893 24 31.9 DcsWlUna PC 18 *»b 13 129 

'D«r«hc a 1334 1« «4 ,H 3Ua Al VS — 42 “ 164 ««Coip*__ 100 _.. 115 65 651 3.4 68 Pttfcn. - AN 1290 .„ 17® 1KB 2103 

7S.M 110 2S3 66 14-1 —I t!*» Ate 82 — *T02 65b 61 U 1 AndaJUnkm _t E16*j E18b t14b 1550 44 228 Dam EsB it! B>i _ . 25b 5 227 

-ZanP rf..— _. - 148 166 - -49.9 320 te^9neai....jJC 12441 *1 141 109 962 20 191 BW}3ees_j*uO 93 .... 185 79 174 56 7.6 OmtertH) 20 -l * IB 127 

SWMWM-.2IC! 950) ^2 96 HI n Z - MtonUS -^MC 09 .... M3 120 161 4.4 65 BZWEutommlFaXI 92 103 90 - - - oalteuan . fl 4 17 4 

•w™. : 23-1 « 01 00 B9.4 49 ftn awm » _ 43 a 117 - - BaHc Tic 1Z3 . 12B 96 333 20 78 DebMliunTMi.M 101 ._. 168 98b 

JJThc N 1S2a| 210 -nZ ~ " tt*enshmd|ai 1b — 2b lb 114 - - 7pcCn»UFf-— . 109 111 95 IBJ 80 - Donor* lM 163 -1 189 161 — 

Cap .... 1136 . ,S2 27 - 5 , rM ,r OuwraUmL.^ M *7b* — <7<j 47b 004 - - BmcdeFFr 


spuTh t -r:™ ji ism 
a Staui 'amr ■“ 

WbheSi,-.^ 3Q " _V 

S ttfUtef At m Sen C 87 

raranL . al 

a*^w&*lnc.1ic via ..„ 
QWM r 30 1, 

flmDbPf iswff — 

ScajMricm.ttio iG6n L. 


-1 if Qnetttai MB B3 . _ 112 SB 475 

Ctiy54eE3B, 82 84 38 954 

FINANCIAL 5Sywctaft_2zw 7 IL izb &b 

Devotena Tns _hC IDO ._.. 132 99 12J 

-or 1094 MU YU Oompco — . m 77 be "BTlj 71b 645 

Maes Puce - h0i low Ctodn ore WE Cano me SG fid 32 ... *66 30 393 

■HO 92b 99b 72 894 24 31.9 Dean Lana.__JC 18 *Sb >3 134 

100 — 113 65 654 3.4 68D*J».._ AN 1290 .„ 1758 1290 2103 

t El 5b E18b t14b 1510 *A 228 ttera EsD_ .^tG B*j „ . 25'j 5 227 

iftCl 01 .... 105 79 174 56 7.8 OmtertH) *H 20 -1 35 IB 127 

=0J3 82 103 90 - - - oa Morgan. M « 17 4 149 

432 

109 -. 119 96 IBJ 80 - Damn X N 1B3 -1 198 161 364 


MHDoiwcq-JG: 

EMawrwj _N 

Bun Sited 1C 

Cmuuei .tic: 

Gukmess — 411 C 

Montana JC 

MBcsan-aen.-4ttt 
MscduiMartkiA N 

UtoQheer dark- •— 
Marydoan 

Seepan5 

Taunoo Oder — KT 


SUPPORT SERVICES 


*1 *814 
S 230 


1994 MU 

S UB CapOe 
540 6144 
*59 359 3929 

149 105 714 

BOB 37S 9431 

642 428 6409 

467 357 53U 

222 1Z7 24*7 

69$ 365 7BJ 

'914 515 2372 

230 38 124 


Seaon 

SenCummeBS — C9A 
SeMleUC □ 11 

<40 216 

i m 117 

TtaxSfi&ttn.tflO 733 

Uptsoh Nu SB 

TrUtntBW □ 152 


uossa Centera - ~2D 

VSrt Mtf, 

WMlKMng MtS. 


,» 1994 MH 

- eon law Cuern 

— S3* 380 3404 

-391 157 12*0 

-1 347 245 J220 

... 203 118 100 

348 344 3703 

.... 91 » 254 

*2b 743 587 3410 

209 153 1368 

-4 148 116 944 

*1 102 B4 23.7 
*b BU OU 91.1 
17 11 729 

216 158 3084 

131 B&b 88*4 

915 TO 3344 

79 77 42.1 

228 138 3U 

.... 327 107 8175 

— 138 SB 363 

180 35 325 

■<A ISH Elb 004 

*1b 148 97b 169.7 




8 8SROE & E S 

5S=^« .30 M 


Ta sn 14,T - 5** 1 82 ‘-ICS 65b B65 15 * - 

inE U 91 " 2499 O 10 Ptefiww..-Sc WA *1 141 109 902 2.0 191 _ „ 

96 01 04 89.; si K5i? -'H'C 1» — w 120 MU 4.4 65 BZWEutoMMiilFaJJ 92 — 103 90 - - - oa Morgan ‘n 

M - - OuaaranraiiSilL^ 1b ~ 2b lb 114 - - 

27 - 5 ,^,- “ OuwraMML- ^ ,N 47b* — <7lj 47b OSLO - - BancOe FFr 

« k -, 3 12'S ,1B 7 P eD,pf - '04* 104 1 04 77.1 84 - Berry Brai . 

“ W - 99.9 -4 4 7 VJDC Cw P» BBS ... 88 B5 1605 114 - SrsatoDmMi 

90 » “ Ml *1 BSFSSJ'^zaS! 207 -2 271 205 225 24 367 Bnnfeado m 31 b ug 5/ iu uwnoniMOK — 1» 

S jju, “ 84.0 -14 Rm On _ <t1WG 410 *4 *447b J5Sb 3406 35 263 Bulwpon 21b 27b 20 118 35 5SB Duma. _Z 

1M ini ac - - 14Bb -b W4 127 3344 74 - Catoftwto BW...#iC] 671 *1 757 523 5574 30 166 DwvefEBJ. 

37 si? M , n r 5»wi**ei — -!ng lb — x ib iu - ae cwmiu._ .tM -b w* cte sea is go Been ....mg 

nil, in? - 5tt7 gWOWBUIE- JIG 2«b« — Mb 18b 174 49 15.1 C4U*8en...-^4n G05 *1 -630V 449 18*6 69 104 Entisw -1G 

im ism, - 3*rafcwfi*<«C 1» . - 133 MB UJ 40 US Canto's I39a .. *t 7rt 125 I860 47 156 {hglobsas f# 

ira 150b UI7U — H 938 — 1133 790 2863 04 - Drtae&om" JT3 40 — BS 40 9J8 - - EM lUgencr ,_W5 

m aaaSi I! 1 ? SS lfl * m ’ 181 ■-- <« M4 4.0 119 CtoWft* XN 74 .... 90 60 1Z-3 44 <p Ests 8 General .. N 

Mii -5 k “-*87 154 Xtgrc B2b -I *B2 60b 3844 18 297 9bK Cl 2000-1 .... (BlbM . .*1171, C90b 756 104 - Eeana U Leeds „5C 




Pi -I, ™ I» (i . - ThjwM_.-mC 1000 -■ 

Wanana 4 “ ,’ n 33 - - - TtteBng GroL?lC 1 .... 

segr value Air* inr — ..* - - - 7omom>wi LeB-.<41 12 .... 

sSuerfim _ - to? ,3 ?^ J®« Ml»» 15 rutenham 1 h 127 

wmm = Si — *25 "fs “'02.1 a« TMngM„_ x«io ibb *1 

-^1 , 6J BO 42 - - - VD ioc 153 

ST -Jp ' 3 ,79B 15,8 641701 8 90 wnta 11G I2SM “ 

5 — TK % “ 1003 >« iSSS*— lB “ L". 

. ® — . 503 436 05 471.1 43 Z«m_ N 134 

—- 108 77b 54 852 49 “* 


,VS* ■* . - - ftogaiHow -.{NC lb 2 lb 195 - 66 

“ini - 6I -® M- 7 Swnwmair.. jo 29b* — 8lb iab 17J 49 15.1 

SIU? ,r 9*raasona»<«C m ._. 133 120 MJ 40 1« 

,7 Jfi 103 SMnrA J1 938 1133 790 2863 0^ - 

77 ,2 - s Mwairiwml N in 244 174 au 4.9 119 

aa 25 2487 15 4 Sous itgre B2b -1 *92 60b 3BU 18 297 

5ns al ' Cl 3W ... *360 298b 1825 15 I9J CnraAtaf- 

244.9 mB g«MB» wC 4 I* •- 10 * 167 - DahraSm. 

,al -_T ■ SC 1b 2‘i lb 455 - - BT 

ion ™ M - 5 806 I?**? 280 345b 280 1,1833 0.7 15.7 

119 u - - ThoraEMI U4_ 1009 -1 1165 959 4770 4.2 314 


Scot East —. JXJC Eli 35 1725 103 Savor S 

*ss^. n§ij S 


£B5A -i C7M? 553b 1524 2.7 - BbpcCnOiRdPftl KIBd 4 118 IK 177 

Fo 3 IK 83 549 77 125 DanmU valtoy - tnH 24M *347b 343 785 

124 .... 134 1?4 2SL5 58 92 DewbpmnlSeesJMr 21 bU -b 4! 2131.7 

2Bm 31 22 *48 57 112 Dutte House K — N 29b .... 31b 15b 123 

21b 27b 20 3.19 15 55 B Duaon..... G Bb -b *Bb 2b 430 

671 ♦! 757 623 5575 30 156 DarrerEsB- 48 61 43 235 

1225, j, osb EI9 368 IB GO Ben ....MG 31 — 53 2S &17 

505 *1 TOGb 449 18*0 69 104 EmMBS* -XG \ Mb 8b 21.7 

1 39a . . M7*b 125 I860 4 7 IS 6 EhiXOPSB M 29 '47 28 167 

40 — BS 40 638 EsteXAoencr TM SZ&a 480 27$ IBS 

74 .... 90 D 1U II * EsBiGnrwal .. N 24 . . 47 18 613 


K C. 2000-1 . . RBlbW - . fll»b E90b 104 - Eeana U Lews -5C 102 _ IK 100 1355 


130 55 *83 IB ID Ernst N 


ib < i*j - - uamaaecs U BB4b -10 1187b 74610513 67 ip u-lsmo .. . _arej aba . ._ <3‘- 24 264 

— 2b lb 45*3 - - BT UH 60 -1 71b 45b 235 35 116 7bHCC*‘2D £100*1 -3b BIBb TOO 211 

— 346b 280 1558 67 117 EaoFuiatblL4lH 733 *3 7» 513 1361 41 22J) HjcN PlB»._ J3C 6Sad 80 04 OU 

-3 1185 939 4570 4J 3X4 Enernr CWW D 81 IK 81 1*8 7bpcLnM20 86 113 BS 225 


E> -Lauda XMG 2Si,d 


73 50 205 

431, 24 264 


2b 1 848 115 Her; 

17 10 IAS - - Exco- 


s * 4 aarss 

■ — 108 n t 55 B5J 4.4 

Sd0i3AaMI._4lC J2 . . - 179 140 1 2 j77j 11.4 

"Sfcgg « ^ i is ».» » 

wna« 22 30 S) - _ . 

SmtaD» — <4C 128 -1 m 117 25 1293 1.0 


LIFE ASSURANCE 


Krrants — s m 

Hra-99 40 63 

SplBBlne — 4MWG 3Gd »i, 

(tote Gffiu ims 

auoDtoPI 96b gg 

SuteU — — JNj 182 ._ 176 

TSMenHv 85 *1 OB 

niMB., 38 32 

TemeBar—XfiiL us ns 


28 BJ 1390 u *or 1994 Mn YU S — 

56 si 2989 -ii Nona Price - mm tow caplin Ers Pit jTr - ®S — : 

» as 1S5 Mj AE60NFI G £3«i +A W3b £CM4 3,007 17 117 Wyjnbg ljto-^NiJ 78 -1 

X, . BMamc ...„tNC 400 J.Z 550 370 tSS 4.1 - MR ""*”- & ,£ 

17 25 1293 , D lrt*LnBS 3 180U Ml 178 6469 65 168 I £3 L»c25t‘ ^ >iu IV 

ss - _ _ legaSG(* _ tunoobal ^ 5«7 407 2.10B 60 17.1 S!SSf $ -'n “?S7 1 

4Q - _ _ L*wt»Ute*WaRaei4Ai *h *£1«L ESil 3J85 7 3 65 S2!ta2s"«N hum ” 

» 118 it q ,ee Lincoln 1«S Sfi cii 2jn9 4« _ XpBer Ivndal ..HCj 394a) .. .. 

as xfiMH? SR Uojos flHwy — tMG If .1 411 162M M 100 


M _ u»«}ijre*wsaRa£i4AK 

» 118 41.9 115 £“£*— Bft 

bk *11001.2 ib CS JE 

goi _ _ Lon & Mon tMj 30ftd 

113 25 I960 162 5** te * bl 323b«l 


m s is “ 

47i 3i2 2 jaa txs 100 

443 308 372.1 66 113 


£31 b 

rjM, 

a*K 

08 

- 

229 

157 

378* 

2.7 

21* 

015 

3ft 

737 J 

63 

13* 

463 

353 

254* 

51 

6U 

*34*2 

74b 

12*4 


- 

in 

103 

S5X 

6fl 

133 

1296 

IMS 

212* 

5* 

135 

3*b 

SWi 

IB* 

08 

9.3 

251b 

151 

4E2* 

27 

X* 

233 

219 

U2.7 

66 

7.7 

543 

45(1 

7*0 

32 

- 

122 

76 

08.7 

41 

92 

SO 

37 

11* 

50 

13.6 

750 

1ft 

71L4 

.19 

10* 

317 

214b 

nm 

34 

a? 

428 

160 

23* 

\2 

- 

385 

246 

147X 

4.5 

179 

170 

W6 

IU 

IDO 

111 


- RwOflhe <ld 2SK) 

17 10 1A5 - - Exce <LQ 170 -2 212 170 2095 61 92 RetcMKrng ...» 4S 

197 75 203 15 3*1 FswDfcHee □ £WII ~A Bib E2JJ» 2560 08 - fefcdJW S 3M 

*1 157 105 460 45 126 G«noni_.._AUO 187 ,S 229 157 3785 27 219 freceonLeta G 

— 154 129 565 1.7 117 GananIS M-ttNO 4780) *3 815 395 2323 63 139 Fmorare EK MG 

... 149 112 UX2 15 219 GdkO&Co tD 382 .._. 463 353 23*3 51 BO Gramer Trust.. XN 

18 5b 167 - - WmesafcBlBplC 3D *34b 24b 1264 - - QPonUiM ,«G 

149 110 951 7.9 * KtfttrahsSCft NQ 104 „ . 129 103 6SL4 60 113 abKbTC l 

NmfcnmAntAINC 688 «I8 saw 545 2124 59 115 Grama -yr 

AN 20b -»<« 38b 20>, 169 08 63 Green Proo U XN 


*'4 37 231] 263 

78 45 391 

51 36 698 

— 71 66 631 


160 -b *170b 137b 724 

121 *2 *22Bb 119 1525 

43 94 36 1462 


deal Bar. — XtN 32441 390 290 569 

5bpcPM2 98 116 98 4*2 

emWff B , KNG » ... 40b 29 461 

7bpc In 2027 £108'; C137b ElOSb 2*2 

anted (taker H tH 25 .— 79 M 490 


23 1960 ibj Pra*n*J — *flCi32S',M *7«j 395 271 6,181 12 14.0 

- IMG 115 R8,u B 4 iMD 26341 — «©8 K1 4112 15 19.4 


24 40 23 599 25 479 nghDeRlm IN 250 .... 270 245 139 

IK -2 245 138 161 J 7.3 160 HtfLandS. G IK *lb 299 1 44 b 4J08 

111 — 119 95 673 40 169 MOCO 12 *b 21b " 3*9 

997 49 1243 794 7363 3 5 20 7 jernqntov nN 154 *4 -311b 136b ISA 

an K7« A9 — t— _ i231b«l »3b 323 218 75*9 42 128 LandSecs- SC 619 +1 792 588 1199 

44H 3mn if -Ml UerairAPMaKtlCI S28U +31, rm 538 1,141 4B 14B I0pc'l26_ EIQ7V 2136,; ruw, 5419 

448 3869 ^ 231 MUHDlmLSs-.'ja 18b 2EV Sb 183 - 03 iflgSSffwl; nSJ “ Si! UmJ »M 

7bPCOPf 43»j MS 38 429 - - lOoc IS MtflDB'30 E1D7V pijT.i tirav Jt5i 

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MM04.__ H 438 

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-1 *187 06 1769 

-30 740 583 1.827 

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415 KO 382 

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100 73 ms 

-3 177 104 762 

K 20 5.14 

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wmaim 220< *2 33Bb nob - - - 

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WBnana^ W7 t 1 mb 731, _ _ _ 

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wkinntt 489 +4b 9B0b *n ' ~ 

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•m 31 611 04 - JO 173 

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47»b +2b *S39b 424 7*B3 1 8 23* "•W*' 88 ' - 75 

3 *3 “g 1 ^ si li pharmaceuticals 

43710 S74 355 210* 3* 203 

a +b 20b 30* - - +or 1994 

45 *67 ““ •" 


,52 *1 ret iSi ST-" Hi 

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75 63 17* - 27.7 


YRM IL; 16 -1 

retailers, food 


51 - 65 37 11* 

215 -- 317 214 10*8 

224 2E0 218 88* 

2* 7b lb 2*1 

84 - T03b 83 127* 

37 -1 45 29 145 

K -2 IK 68 658 

16 -1 30 15 612 


: telecommunications 

I +or 1994 MM 

, 4 . Nero Price - high tow CapEm 

7 a BT XtiC 387b tZ 408 353b «,1<1 

inn Canes Wire _^tlC 383b -b 543 3W 8*K 

if? 7hcCyLaU8 £1851, 2265b £182b 501* 

l0 * GNGlNaidk KM **6311 £50 21*8 

" MppanTST £5638,1 ^jJ-KBI^&JMl, 

_ Searttar « 1458 ♦S 150 IJ« 90* 

_ A MW .tlO 948 ,3 IDES 7ft 728* 

Mq Searty Sens _.tHD 770 ♦» BB2 sos 04*0 

SS Vadataae WO 217b +»*a *2* 157b 6*20 

,ft - TEXTILES & APPAREL 


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- high low 

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6*70 48 
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2*52 11 
1,790 Z5 
500* 2.4 
4,105 4.1 
7361 - 

2*17 4* 
1*74 48 


80* 12 6* 


1994 MH 
Men low Capfto 


Notes Wee - Mgh tar CeoEm Ori PIE sgru u“ iuju + ,u in sni, 1 

n PJ7.L *ij P 17J. nid im nn inn °ZS **“ Js **! * 


as tao 44 MLfi - 464 AS»B» O £1 J,\ -#JJ ri7A £1I‘J IJJ4 0* >9* A^Si l^md "^5 nS ... 


IK 115 8*7 

315 222b VO! 


investment companies 

♦ V 1994 YM Dev 

Notes Pries - Mga *»■ Gfe m ft*H 

Baring ChnaafeS — 741b *«b BWi 819 65 - - 

WMroote sjb j* -I 

Baring PwnnS z cab ♦A a»b C]8i, 0-.-- 

BaringSecsEmMa. m ■»«, IML 7Wb - - - 

SiRSr °S !i T8 =i 

phlnn A Fflfcmn ■» 1 TBStt *7 771 180 2A 2liit 13J 

oKtafStr: ®* ^ - - - 

Emkwnenlal kw S — 441b +4 800b 413b - “ ” 

EttraSSm^iC ** — r ^ M 332* H-T 


9067 

081* 26 


SS — SS 15 ■‘SSSSJ W *“ 3 *“12 - - 3551- -...-HZ 280b "m 315 222b 3*37 

130 200 138 861 33 11* .*te W--- .-.~ ot "* m lay " " Bti3*Bros . . . tM 4B1 *4 US 413 aOCLS 

14*2 . — 22 11*2 110 - - CartflO PmnTO. „ *□ 383 W 303 387 - - nurwn* 3M~ 23 43 24 fiL7 

law -1 183 125 7*3 3* * Caltech xib 222 __ 233 191 1572 - - " u Z : H lib 170 

35b *1 -b 2S1 i 77* 22 21.4 Otawdanc8_-iNa 92 . . 151 ft 825 - - SylimS ^ » *Tb 137 7Bb 1*84 

Ttavmh__uc «a -2 822 310 , 467* 4* 11* EbnE £22y -A DBA (21 A «67 - - pSep* N 3« 3M 344 TSJ 

Ttwrmn 728 „ 886 0K 6197 52 362 Rsons —JHGinbtt *lb 157 107 881* 26 - FtawSon'lE N fl K 37 1W* 

Trinky toO flC! 370 472 378 *0* 3J 17.5 Gtaro ijtG B1M ♦10*j 7» 520 16W1 5 5 JJ* K ^ ^ J7 m2 

(later TV tit TO4 -3 780 518 73* 19 21.8 Gnuitfin fid 1(0*1 ._ 1*5 Bb 70* 47 199 ^ OT 7 m ,202 

Vtt Oav UtdNawa. — *ti«- 529* -2 *731 47B 1*91 54 129 HfltandAWr □ £2* ♦» E13U tS,'. 2317 35 * XtN 1M8 . 1OT8 m 1195 

5r*« m ftnt- vni ZZZ'jt/j VS T01 IIS IM is 2U flMCr -3 Bias, -A fisfl DH TOJ U { irtj wra “f 211 m 408 

-e WMBO .xJfc 22b 38b 22b 149 2* II* Kidtogrim. *□ 42 — 151 37 WA 83 81 g *' ,SI iu aflfl 

M ' " Wwnrti Z7Z 13 23 13 622 - - LlylB&S 840* -A Eflb O0\ 11,712 42 - ~i&= J “ S ^ 

tta 114Ud +2 T29 63b 921* 1.1 IBJ Modew *tiO 17W ... TW O 4TO-7 11 m XtN 183 n§ IM KS 




I ttiMhteTnMJC! as -1 

l WBnarta— _I 229 


"8 3 615 

3H 150 197J 

230 21 22* 


8«s -s Edib ojux s ^ -m j - a g 

j Ntodara JtiO 172* n«7 im 4767 n ii« STw"" xin ira . no in a* 

— NowB Dkr EBb -b BU £S5« 1*24 3.7 2.8 ' VG 10 re 9 690 

- Proteus tod « 253 -a *4«b 130 76T - - ISSnlW ' tiC 1« *1 iff » iS 


♦ Non Price 

- Ucheyoeat H 90d 

Anton N 87 

Atonntaa WoriulNG 147* 

ADM Trade tN SB 

ABitas * 95 

P c BunKWim lO 218 

ug BedanmA JU 30* 

JtaderMdse.-jNO 9 

Bridpon-tendry _*N IK 
{H Brh Mohair — _ — Jl 197 
|i 8Kero..— ...JIO Zl«r 
_ CattuaHlraa— _^N 42 

Camonri htl 24 

lag Came iff tod.. . JO 3b 

: CtortertaWRaJan ik 
,, a Cfanenn — XfMH 33W 
1 . CtnKriyaia ^.tiC 100* 

,.7 Conred XG 6 

oa ConnaU*Ta»i..t*=' 4K 

,0 : Dawson hd HO 130 

n 4 Dertura .flO 128 

,70 OnkteHeel Ji 14* 

_ Dnanmond N 29 


♦ or 1004 MM 
- Mph tow CapEm 

— no 81 ms 

♦1 IK 94 328 

238 148 485 

♦6 817 488 1785 

189 90 117 


219 270 

214 

2496 

52 

38* -1 71 

38 

4*4 

11* 

5 17b 

IK — ioa 

% 

4X4 

IU 

3* 

197 -1 228 

171 

292 

54 

Ziff *27b 

»b 

11J 

- 

42 K 

41 

4*9 

30 

24 — 74 

20 

2*0 

— 

lb +b 8 

3b 

374 

— 

1ft IBB 

163 

903 

5.1 

320* -3 385 

292 

172* 

2* 

199* -3 297 

IK 

« 

52 

6 Bb 

4b 



MERCHANT BANKS 


Sewing DM 5 OOlti ♦3b ECW S362* 2*78 2.7 

Scoria XO 285 295 242 1964 - - 

Snrt Bestan AXtiC 42D* .7 463b 357'j 67B3 37 184 


Mudta XPb tHG 1H 232 168 211* 

pa* find w: 119 -1 148 89b 197* 


_ od .far 

♦ or 1994 MH VB Sto £ » '"S S U jtl ttfe«4* ♦ib «0 Vi 7^ 

- high ton CapEm Gria 912 ' I SJ S? h h Shoorta Jt_ 13b ♦! «3 12 19* 

-5 W7 89b 112 11* - ZmKB 888 »5 *73 672 6W7 4* 174 snoptteRnJ'iftcPf'Qg 70 ♦! 101b 3 168 


ni Aormtoslei N 140 

4o Foster U1 Jl 18 

_ French (7) XN 95 

,,C Ceratsn *IC 82* 


rSESGtc-^ - K3 Tito 515 - - - BartigaBBcCUVMPrt. 88b* -5 117 09b 112 11* - Snort* Ra7 7«cW M 70 .1 101b 29 IM 

fidNfljmOTC— ^ + r! jH m 9bpc mn-Cum Pit 10Tb* -Sb Wb '07 <2* n.4 - _ _ Tosw — „4ttt_M8b* -b 20 200b b^3 

w 11 ^ v 2* - ™ -~,* a8 a H SK Vi PRINTING, PAPER & PACKAGING _w£a»- £3 «' 7 -• w a"«j| SJ2 

n,u nu, £1511 2* - — tamlnus. XIC 215 -3 <13 2B 3769 67 88 Ihontam - - . .MG 178* IK 162 11*2 

sS SI? '* SS IS - - 7hoc C» PI VJZZ. 99b -1 W BBje 1262 94 - *a '9« Mta rid Watson 6 nap Xt«_ 377 — 422 779 IB* 

419 *43 400 22* 52 112 Notes Price - m*> low CapEm Ors P/E 

478 m 424 833 * 51 a< AGWfflrgd. ...JN IX .... 184 IX 243 SJ . ♦ RETAILERS. GENERAL 

61 79 53 240 I* 17.1 AH .*TtC 3*7 444 347 743 11 :ia HEIJULCtta, ucnctwi. 

1388 +23 IS74 1050 1.38 1.7 117 Ado IMn.. (WG 273b* *3b 318 237 2*34 10 112 ♦ nr 1984 MU 

UB5 +29 1«8 1043 3868 1* T1* AaWnCmm*. *X|N 165 .... 2ffi 145 23* 3* 1?8 ttetes Price " 


11+0 ♦■ “■ 

W+ 38 42 

.1 £21 b +.1 rab ns 

y> 572b KZb 517 

Ganrte Odte~S — -N £21 b +A ^ U - - 

Wanrnta S 1135b +10b tm W - - 2 

ssr? s - J, SiS A i® 1 : - 

SSSAraBril^" n « 68b 162 91* n.« 

am^DrtptRi. Kb n » «? : : : 

^ -u ^ a - - : 

381b *3*4 777b 350 

JS=TF IS "A m i ' ra « M « 

?£*&“ <2i S IS « 

■S ^ S-S = : : 

10014, ♦q n*4b 7SB - - - 

370b +3b 5nb 211 - - “ 

jFPrtncwnt — 475 — 838 : : : 

fflW-s J! Tt wS ffl . ^ - 


2* - - 7b*C»PI 
l* - - ' "" 


,si ^ ’S : : : 

a 2frU 6 — — — 

n 128 94 5* 1062 164 

>sa»? ^ ® *S “S ,J = : 


- Schrodere— 

102 B1* 21.4 m », — --j 

J- a — .114 75 1862 4.8 idfi Bemuse — 

644* +3 1012 509 1*16 4J It* Btoetunha 

21* an 210 18* 5* 14.6 Bowwar — 

Q.7 - - TbpcCvPT it* ♦,-! -*m 

: : : oil exploration & production PBsssJB 2S :: w 

* -- --• 7t>u Or Rd Pi 218 __ 282 


*2» no ai las* xu «i. . w 

Mta km CapEm 

BO 25 267 

« ^ ^ , ' 3 '’ <Wgw :i*C 339* -1 410 W 1*17 

IS *’■ ** tl* ’5H AmtaaK. N2l7b* -*i 237 isi 37* 


a* . . *472 36? 1161 *J ISO Prte ttl£ 

111 -2 nrl 97 064 1 7 51 8 252! ijkiF 212b -lb 

448 +6 "K4 4® 2*40 3* IB 9 ftB* -1 




JF Japan OTC Inc 


: 

wSSfcn: ^ ga ga M 

ftabe»6V £«i E W; i 

““ — % ~ 4?8 1J 

sSSdwSpfltot— TI +b » « - 

KSEi IK 1 SS! “I 

a"Stezf - ^ r 

.-east: 3 133 « 

IS *1 : 

LEISURE & HOTELS 



Pika - Mah tow CapEm a** PIE 

10b -rib 5b 111 - - 

58 83 42 W* ~ 


SS iSS 15 ;So **w~::iQ « -t 

'£in=i “ S ^ «« ,♦ S5inHe*iL_ .N 235* .. 

IflSc 128* 180b 126 174* 15 18* BeSte* 1 * N 134 

-JO 164* IK 18 HU 31 JM SanSwii: IMG 5M "-2 


_ _ , _ 1DWN in** '-W CW Jl J Rgnutatan NT SIM 

riE it m 24h iSj Z 21R Cwuintt— ftc mtf .. .. m im 4jj a 5 125 Imz 38 

^ s ~ ^ try S£ SB B SSE^T-S is 


39 03 ft 214 — — rfciiai ■■ in ic hi 

SSSb £7«b EB1% 10*41 5* _ QOridefctoE til 


91 -1 102 54b 1963 

jb -ji w 131 1169 

178 72* 

133 628 

110 510 

36 81* 

29 11* 

284 I95>2 4161 

an 497 5*bo 


2b := “ lb S* 4 - 10 £ ^PrtUlT„'--AN M7 .... « »7 M* 15 14* '. J3c *Sb +b *74b ‘S «* 

M +2 94 K 83* - 467 Sir** ISS * 2 ’K! VS ♦! iJo C«» *N IB3 .... 248 153 23.1 

77 JC _ Otfyn — r.*W K4 T14 78 885 x-5 14.9 CmtfrWrt MI 243 , _ 3D4 VX\ tNELR 

*ci 33 imj II _ tWpSipidL-rsijj 10WJ +3 137 IU 5 4 J15 ' MI 169 +1 

* w. «S - - ^ «= 5 5 -i ii fs ossr.*- au z -2 

IO, sv IB - - PtiiroyGrow— *|N « - Wl n 364 7.7 ca«»Canfc.....JC 101* ..._ 

'E ~ Z rl 113 CotaMnrAS. - 191 -1 


WNG 102 .... 148 100 


Bil r, i OUUU - - - _ 1 n UlWtak TVi (Ml wni M pww 

JJJ fj BRMRi&Jcftai J IZ 2b -12b 2b 18* 

i** 4 5 1, 7 touwnM . X|nN 2Z7* _ -2BS Tin MiJ 


20^ -b 
11b — 


11b — » 

ft 2to 

OM -b «b 
Tba 1 "8 


ft 20b 42* 
ISb Sb 2*3 
30 Ub ISO 
28b is 113 


_ FMnnvGrom- 

_ PergasDnlnl 
_ FWiyPk*.. 


‘ ' SSfi 

I* 21.7 5SJ 


Iff 120 1X2 59 


Giu*) 231 -1 311 228 137. 


3b WA - 05 


“ ” * CdtoMatan « a _ 

„ 38 '- 9 CBiMwyCawefc . -N 91* +i 


11 12b Wb 4*0 

tor +b 2b ib 38* 

22 27b 17 7JS 


18 — 17 12 - - 

2b — «# lb 653 - - EKES? 


I u ! Huntef^Arotey-tiO 1B7 133 i« 6( 1! 922 MfiStaii -■ 2M* -l! 

I : Brora*.___#WO 151 .... 230 150 764 41 SI nS«r!. .it 191b -- 

. TT7 AN0POIW XtN 282* ... -2W 2*8 111.J 24 »J iMeODvCePI. .. 75 100 

U3S J,? ,’AJ ,fl 131 Era NG 7b -b 11b 

£17JJ *,4 £T9i't £12'i 1*27 - - pG. ah IBB* tM 

iPWiBonar-XtitG 410 -1 *438 3W 4034 11 164 Sr _ sci -wa 


I W7 J«1«F"W — *TN 282* 
_ _ KfcartcldS 112* 


220 1B6B 
152 2W 
38B S22 

96 17* 
IBS 2*16 
04 E*8 

81 17* 

720 1762 
353 245 284* 

B7 170 7812 

«0O 71b 1369 

lib 7b 644 

284 167 102 


1994 Wd rid 
| tow 08*10 a** tie 
o a MB - - 



M ’ZiVik 416 <77* 17 14* OK 
M9»9fr=-*1® JSr TbiU 138 761 5* - — 


too □ 


48 5b ♦« 5B4 420b - - - ftp! Otedimi 9lC 

K -1 77 54 972 2* 21* 

44 ft 31 49* - - SS* ™ 

no -b 109b 38b - - - SCABa: 

ISO — *177 137 1965 08 132 ^ 

190 +17 in 60b - - " rffi 1 

90 — GB 40 78.1 SJ - wnf - 

148 +b »«8 IW 1 * 1.406 09 - 

52 73 48 3*B 18* - SS" 

KSb W7b 9®b 41.1 11.7 - s ™ 

2b — Bb 2 5J1 ♦ 

K — 76 SS 4861 - 717 - 

.4* 7b 3b 4ST - - 

22 30 22 11* a? 8.4 JS 1 ?™" 


» " 2 « .JS “J +9 u l BHUMistf 554* -1 

140 183 13*- otJj s-S ihnupm wn 171*1 .*» 

eizii £14b £915 *0.7 11 267 |SS£i “". giSflj 23* .Zl 

0K+48b1239b 834b 1*13 30 211 187* -5 


524 6573 
164 361 

71 144 

Bn+ffbizaw, »4': 1^3 f'' House at Frasa.xoc 187* ^ 227 1» 4264 

, 342* +1 412 314 3369 23 IBS rtstaTJ itHC 82* 95 68b 169 

•S ’"SJ* * H1 f JJ,’. 1 ^J* 05 " KtoflWtef ...JIG 472* +5 778 4M 3. Iff 

»□ ISb -I ■Mb «3b 100 ,r . " Heeneie. . ..XN IK 778 IK 21.7 


ISO 138 87* 4* 11.7 £*5 Mp ‘ 


138 TM S* - 
19 12* - - 


SStoSlSo 1*1* '"-2 4?n 141 212* 8* - 



jm — 


300 ?o5 11.1 2 * - PSteacnftHfl-^ 

«? 35 21* 3* 161 PwrtirOws.-fiC 

Ss ZS 9 a* 4.B 168 PrtaldtoAS^^. 

£a 13S 102* M M R«m»Etatt54*a 


4b +b 9b 3b 5*0 

GB +b BBb S7L 

4b — 13 2b 138 

7 9 9 13* 

148 — IK 148 IS* 

U — 111 95 91* 

29 "b 3£b ?1b «Z2 


1 Waof.— 

_ BpO/Pl 

_ waodtesntl) 

_ WlWiBB.— uiu 
^ WinMnmPraafiOtN 147 


C ISb -I -Mb '3b 100 - -toreneie.. ..XN IK „ Z7E 158 21.7 

J. 18 “ a? inf - - - W 339 — *<3S 32 719 

^ m W J2i Ltoyrii Chemas 302* -3 3HJ 277 357* 

608 573 398 791* a* 7bDCmH 29G 252 199 34* 

3550 -8 ‘4Mb 2 74 b 1*04 18 M4 wn Furtue...-Wu IX 194 126 9061 

Tft 99 *3 JIB 92 J.7B J9 S4 *0 fT _ 122 Kt 12* 

C S37I1 *\ EMH 4ff* is 30.4 UaveiSpoa. nO 401* *4b 460b 38011.179 

39 ... ? 23 IX - - Marcias U).. . _XN 501 £90 495 279* 

« ^ 18b S« ' Moss Bros __ .XJH at* m 238 667 

*5 -Z SS !S 5 HaJ — ■■ -tHO 245* ♦!'« 275 214 912* 

7« - • JW ’» 4 '-» J* „ 7 Hottnatenj 102 . . W4 102 SS* 

227 +3 *291 209 23SJ 4 7 11 1 . . . XN 91 . ... 99 X 22J 

» - J“ *** Jg? trttaroatoa . *N M .. 335 250 1367 

tN 147 149 96 32* 2- 188 Omni Nataa, Alt 29 X 25 698 

ParWdgeFta.. — til 80 -2 113 90 17.7 

Awe* -HZ Wt .. ~X1 12 564 

OSHOOt ...* IK* ... 2B8 165 G62 

raeaftop --{•« X X 20 103 


‘J 

♦* -t* 

»♦ ^ 


sretf wan— 


Otwafc-I » - j s 

BjCeata— 


*2 Tj >250 135b 102* 3J 69 

“s J ■» » 662 1.9 M* 

« J? X 48 9*0 1J 11J 

3 I! 7b 2b IM - “ 

» Si n 4*4 4* 109 

n£ “ 1« 84 WA 19 « 

/"HE 247 114 811 1-7 

^ « 74 1460 2* 15.5 


220 — 282 129 41* LU 

375 — 493 325 3892 5.4 - Moles Me? 

»b +A E4DB E33A M61 2i - MtaUcndan^.XMG X* 

32 « 43 &1G t£ 4 SbpcCvfldPr «b 

BO +1 87 SO 33* - - AngtoS Jamna lib 

21 — 30 19 894 - - Argent 282 

Sb — TI 5 4*7 - - Aitgfa»&a....._D 79 


nh i «* - M i PROPERTY 

85 X* 7* 



« 43 & IS U t SbpcCvWff «b 127 fil 37* 

87 50 319 - - Anglo S Jams lib _. 31 ub 3*0 

X 19 SEX - - Argent- — □ 282 ZJS 253 143* 


iSS4 Wa rid raeaaw v 34j 
high tow CapEm GTS P* W*o . HN- 

IX 94 08* 51 i?3 Roaehya rtC 

127 0i 37* 7 B - Stan... . tiC 


ijnon & FUttosm «C 28 
PartidgeFtoe. — til 80 

Awe* -HZ Wi 

uEHWot ...Jl IK* 


5 4*7 - - AfletoEso— .n 79 ..... 


JM 253 143* 
76 » 162 


25b -3b *37b 14b 410 - - AadaPi* *fia 1TJ* I. *144 U» 911 l» r08 


- StoneL . . MG 21 

- TbpCfPf.. . 57b 

- Smnn WK) IC 4*3 


11*0 M7 Hfi 140 5bffC»» «»«» 


99 15* 83 - 5Mrtwae 


a: x -i s so i6* 

Ttc 1« 209 140 27.7 

T«- 107* -b 132 991/ |*2J 

MG 21 48 20b m* 

^ 57b S3 40b 19* 

..IC 403 -3 6* 427 1*92 

770 -3 1290 730 291* 

JC 215 *1 2SZ 189 B94J 


13 i4* emsio.— ffC M 

{* “SSSitzSoin ii? 

J-J iZ3 Helene MCI 27b* 

_ 1***ng PenL — .XtN 231 

Ve ,,< Ho(l« «C 23b 

H i:-; Honeysuckle » Ti 

8 15 ‘ MraceSm* K 

Jacquea Wart XN Iff 

Jerome TN K 

Jona Stroud N 353 

[W Lamwtwh * m 

ifa P/E LtetaX Tti 380* 

- - Laette. ti#l 270 

36 158 UdtoWlM. — Old 97 

11 178 Lister * 34 

4* 21.7 Lime M) □ 8b 

5* 7* KS^wTHiS 25 

5? \)i Srrr--^ *% 

2J 430 Pstdand _XN IK 

7 0 54 pendand. — **«□ 99 

a.o - pharos xttc n 

U T9? Readout HI JC 74 

18 184 Rnmore xtN 74 

- - HttSicrda 6 43 

13 202 SET 47 

3* 331 art J+N 143 

3.3 * S«niieodGnj„tiCI 98* 

3 6 20 3 SftSoti N 148* 

1* ail Stebr IC 98* 

14 24* sanwa JC 117 

5.8 14.7 s®ti?aiB HG 57 

£0 * Stung XHaner >KNC X 

9J5 f nwy r zZE 4Kb 

59 Ml T( jye 118 

1.0 »2 Uh SaJety .JLHG 47* 

3* * Usner (FI IX 

43 263 \flval Ji 37 

33 - WBflSiBi -VtN 104* 

- - WnrthtogiDn M 67 

12 Voridyde til 2S7* 

*■! 13 - TOBACCO 

I* 14J 

,7 Km Price 

f. Si BAT tods. ^INC 450b nl 

li SJ 12bpcLn '03/08-. E115A 

1 1 jjjij ROMiBiBlnBUte.NG 42B 
L4 18S 

,4 K2 transport 

19 115 

19 im Nees Puce 

is 346 A* London 4« 83* 

I B - AI Mppon A6 l 1 706b 

1* 0.7 Apeled Dtatn^UC 1B7 
16 - teat 8r Arts. ITttC 2E8b 

1* 17.4 BAA. trt<n«Bb* 

1.7 15J? BteflMftK IX* 

10 17.B B«ig«w MKr □ £13£ 

19 12* Brdrili Atony* _11CI 366 

]D 139 Cap 9 b pc Or 165b 

3.4 15* Camay Pat NKBJ0O 89b 
5 a TOO Cte ritsorrja — $NU KM 

- 28.1 Dwt « IBS 

L2 11.3 OMsangrau) — ftii 320 

- 225 Euntuma Ills □ 279 

1.5 108 tlftneras 1999.. Bb 

- - ajIwUC- ... * » 

19 18.1 R«h Pens tfC 440 

12 123 GAIKS £25!] 

31 160 6*T Bus *4l#C 230 

12 IM D0-«Mri — WflC 190 
i.J 1*2 Coodelhtoant.WD 198 

- 72 &QtiCdrttaantel.X1N 445 

- toMSnam ..inN 130 

12 234 jacOB(Jll ...XiiC 89 
16 362 Leri (TSeao FrtS — C 03 

32 191 MeywIWAS 3Mb 


*1 GS* 451 490* 

— 158b 118 2K* 

143 97b 158* 

— 531 32 4.18 

42 28 4*9 

n 72 9*4 

3BB 266 3H2 

*166 136 19* 

2B 18 2JB 

_.. IX 84 11* 

♦6 82 48 20* 

— 1J3 73 1SL4 

*ib nPi ii «x 

*33 25b 54* 

__ 2B3 222 S3* 

♦b *31 22 31* 

-0 91 64 582 

n 48 77 A 

-I 711 173 17* 

73 55 US 

38B 268 91.1 

*M2b 132 19* 

♦1 495 333 106.4 

... *340 285 BOX 

— H 61 ZU 

68 33 0*0 

— 9b 7b 7*0 

101 68 8*9 

— *28b 18b <4* 

•40b Mb ID* 

17 11 2*0 

— 208 169 18* 

123 M 337.6 

73 63 143 

-b 112 74 144.1 

90 72 11* 

98 43 mi 

-1 70 43 1*9 

IK 141 21.0 

-i in 87 mu 

iaa 137b a*5 

__ 148 98 52* 

.... 155 117 11.1 

84 ft 48* 

X 18 34.1 

-0 SOM 643 6*01 

— 122 102 2*0 

68 47 1X1 

132 IDS 9*1 

44 34 20X 

106 « 7.78 

-72 54b 15.1 

-1 289 239 28.7 


mnTedndogtoeZZZZ 

MnAlin ui 

wuftronh -f 

CANADIANS 


Amur Sari* 

BkltoMnol 

Bk Mon Sen 

ECGaa 

BCC~ 

ttaaan„.. 

CantoipBk 

CanPadflc — 

4pcDen . 

Denan . 

EnhoBay- 

awiS. 

HntaerSId 

Hudson's Ray 

imperial 01 

Sica - 

Atom Carp Attain - 

noUuam 

RoytoBkCun— ... 

TVXGoid 

TorontD-Dom — _ 
Trans can Pipe 


SOUTH AFRICANS 

♦ or 1994 Mkt rid 
(Urn Price - high km CapEm fir's P/E 

Anglo Am tod E2fHi — £30 f13b 1*32 2* 21.7 

Bwtow *Z £4i1 W, £5J1 E3U 901* 06 - 

SokHtePrapfi 11 Bra 128 75 12.1 7* $ 

HiPiapa. K « ft 3*2 12* - 

SABOL f 523 582 280 3*63 27 - 

Kama -t £75* xfl naji no *243 i* 23* 

Tiger Oats 715 +15 830 6ft 1*72 2.1 A 

Hmgaat-Hnett-^Jl 878 — *685 3561, 015* 1.8 198 

QUIDS TO LONDON SHARE SERVICE 

Prime tor me London Shae Serves rieWrM by Ext* Rnaodal, a 
menuwolflw FhnKJM Tlnw Grom 

Company daaaHtosdons are based m drone trod for tha FT-SE Actearta 
StetMtel 

Owtog mhHmcm are riioiwi to pence irtea nthetase ttded. Hflha and 
Km are Deaed an Ma-day mto- prices. 

Where stocks are rtanoateaud h currondee other than aartng. this to 
Indicated ata the rone. 

Syraota rafcrrtog n Mdend staca appro- to the notes ataiim dffy « a 
guide n ytefcts and P/E raone. OMtanta tod DhKtend cm are pUMahed 
on Monday. 

Martel apBawmnn anmw la m cidMaa setnrteiy lor each Kne * 8ttcfc 
quoted 

Esthnoted (rta/aarnkup rata ore based on Ittst annual reports m 
account! and. where paaatte, an codaad on hterta noures REaara 
cafcutetad on ’nee* dto atoudan B fffc Btento gi per stare tang computed 
an profit alter taxation, ran K totog excetmonat orolttsrioseea end unrtfieved 
ACT where «t8ctat VtaB are based on ntaHittes, are gross, wasted 
ta a Arioend lax creff at 20 per cam and «sow tor ntee of declared 
dshtadiai and neMs. 

EffnuM Nei Asset Values ptMhq ate sremn tar Ki wati m ia Inna. In 
pence per share, along wffli me percentaoe dtocaum IDfaj or premium? 
<Pn -i n ins cunent ctaetog aim price. The NAV tads eesunm prior 
g ag es to pte iwtoa. canwrttfaa ceawrftd and wairencs exeroaed IT 

□ torScotes the nos oedyety traded etnctoL Hits hetudes IK saseta 
whoe uanaacrioix and prices are pdMu cortlnntay through the 
suck Entange Auenaed ouoratm wm (SEAO) ora) noMJX 
stem through the SEAD uernadonel syctam. 

* Mghs and low mited due hem been adtosted u Mow (or riatat 
issues for cats 

t hterin stoca henaaeod or reanrad 
nettai rince reduced, paeaed v defened 


I 

X Free aaraartaarim report amRddl. sea dmta tarn. 

4> USM; not feted on aw* Erchwfle end comiBny not s«*|edBd 
sane deose * feratata as Bated Securitas. 

? ito!9 4260 IK & tab hcorporaUHi non-karri ramparted. 

Price flttnedfteflwnrion 


VUdd based on e Mot affect to ACT. 1900-94. 
otMetacrotow FYUdbaadan P flgurea based c 


?s%. 


:5m 1994.95. 1994. 

sumddMdend B Auunud yUd ttet B Forecast ovulea 

S-HTSSSr %£££ 
SHTB™ 

ttwtjwa KYWdhBSBdni 


♦ V 1X4 MU 

- I*i »r Canton 
♦2b 879 372 15*84 

♦aaXAD'lb 58Z1 
-2 489 337 2*41 


♦ or 1991 Kt 

- h«n tow CapEm 

... S3 56 &S 

-10 777b 919b 10.173 

— 18? 127 SO* 

-5b *315b SS 1*13 

♦b "541b 440 B*» 

128 l<Hb 751* 

+.'. £16,', £12 S2&5 

-2b *4Wb 344 3X86 

-b 230 150b 5311* 

♦b IX 87b M2 

IM 75 »* 

_... 1W 140 25* 

.... 455 310 121* 

♦17 "SBBb 1« 1.100 

♦ b 42b 5b 494 

B7 50 12* 

506 405 132* 

-A E2«3 £24b 482* 
-1 231 ISB 92* 

191 111 SIX 

— 209 125 101.1 

*462 267b 112* 

-1 MX 120b «X 

71 » 20* 

.... Ill 82 60.7 

-b 478 315b 1*M 


fSSeddhMend 1994 WMBl “ ,br Afctaftfador 


rid ttaSaanoBeer 
Gria WE o fc rwas L ere; 
57 11* anraiMrea tfctti 
106 - yMd, pfa taead 

3* 22* Printout year's i 




FT Free Annual Reports Service 

You can obtain the current annual/interim 
report of any company annotated with $ . 
Please quote the code FT2732. Ring 
081-770 0770 (open 24 hours Including 
weekends) or Fax 081-77Q 3822. if calling 
from outside the UK. ring +44 81 770 0770 
or fax +44 81 770 3822. Reports will be sent 
the next working day, subject to avallabilty. 

FT Cityline 

Up-to-the-sacond share prices are avodable by 
telephone from the FT Cityline service. See 
Monday's share price pages lor details.. 

An Internationa/ service is available for callers 
outside the UK, annual subscription {350 stg. 
Call 071-ara 4378 (444 71 873 4378, International) 
for more Info rma tion on FT CKylfne. 


V- ■ - r- : U . 


f 1 





36 















































































































































38 


FINANCIAL. TIMES TUESDAY NOVEMBER; 15.1994 


CURRENCIES AND MONEY 


markets report 

Krona moves centre stage after Swedish EU vote 


The Swedish krona was the 
main mover on the foreign 
exchanges yesterday after a 
weekend referendum vote in 
favour of jo ining the European 
Union, writes Philip Gatoith. 

Although a “yes” vote had 
been largely discounted, the 
market still drove the krona to 
a high of $Kr4.6530 against the 
D-Mark, from Friday’s close of 
SKr4.75. Profit-taking then saw 
the currency ease back to 
SKr4.712 at the London close. 

Also In the news was the 
French franc, where a further 
political resignation helped 
drive the currency to an eleven 
month low. It closed at FFr3.44, 
from FFr3.439. 

Overall activity was fairly 
subdued, however, with most 
market attention focused on 
the meeting today in the US of 
the policy-making Federal 
Open Markets Committee. 
There is an overwhelming con- 
sensus in favour of the Fed 
raising the federal funds rate 
by SO basis points, to 5.25 per 
cent 


With the D-Mark the victim 
of some selling pressure, the 
dollar ended firmer at 
' DM1.5453. from DM1.528. 
Against the yen it finished at 
Y98.425 from Y97-5. 

Some analysts fear, however, 
that this will not satisfy the 
market, leaving the dollar vul- 
nerable to a sell-off. 

Sterling had a quiet day, 
with the trade weighted index 
closing at 80.2 from 80.3. 

■ After the initial bout of post- 
referendum euphoria, the mar- 
ket's attention returned to the 
underlying economic chal- 
lenges facing Sweden, causing 
a small correction. 

Mr Chris Turner, currency- 
strategist at BZW. commented; 
"The krona is probably’ not 
going to appreciate much more 

■ Pound hi Now York 


NOV 14 
Egret 
1 mth 
3rmh 
lyi 


— UM-— 
1.5885 
1.5882 
15875 
1.5797 


• Piev. dose - 
l 5959 
I596J 
1.5959 
15885 


from here, following the sharp 
run-up in the weeks ahead of 
the vote. People realise that 
joining the EU won't be the 
answer to many of their prob- 
lems." 

The key concern is whether 
the new government will suc- 
ceed in putting its finances on 
a sounder footing. “They have 
to address the fiscal issue if 
they want to take part in mon- 
etary union," said Mr Adrian 
Cunningham, senior currency 
economist at UBS in London. 

Although the prospect of EU 
membership is likely to serve 
as an inducement to tighten 
policy, the central bank's 
efforts to curb Inflation could 
complicate this process. Mr 
Turner notes: “The central 
bank has shown itself happy to 
raise rates if sees inflation 
ahead, but that is not terribly 
consistent with trying to lessen 
the debt burden.” 

■ One of the catalysts for fur- 
ther French franc weakness 
was the weekend resignation 


Swedish Krona 

Against the DM (SKr per DM] 
4.70 


4.75 


4.80 


4.65 


7 November 1994 14 

Source. FT Grapfwa 

of the cooperation minister Mr 
Michel Roussin. the latest in a 
string of corruption related 
departures. 

“Is there another Italian job 
in the ofTing? That's what's 
bothering international inves- 
tors." said Mr Peter Luxton. 
economist at MMS in London. 

Mr Roussin's departure fol- 
lows comments last week from 
Mr Jacques Chirac, a right- 


wing candidate for the presi- 
dency next year, that unsettled 
markets. He proposed a refer- 
endum on whether France 
would join a single currency 
arrangement, and also pledged 
to strive for full employment 

Mr Turner commented: 
“Once you get within six 
months of an election, as you 
are in France, politics becomes 
a much bigger issue for the 
markets." 

■ Amid all the speculation 
about what the Fed may do 
today, a few facts are to hand. 
One concerns market expecta- 
tions: the December and March 
eurodollar contracts on Liffe 
were trading at 93.97 and 93.46 
yesterday, suggesting that the 
market is expecting rates to 
rise by around 125 basis points, 
from 4.75 per cent currently, by 
the end of the year, with a fur- 
ther 50 basis points tightening 
in the first quarter of 1995. 

The other involves a bit of 
history. Citibank, in its latest 
currencv comments, notes that 


the average cumulative 
increase in Fed funds, for any 
period of monetary tightening 
since 1960. is 530 bads points 
over an average time scale of 
20 months. 

“This implies a potential Fed 
funds target of 10 per cent by 
the end of 1995r says Citibank. 
“However, the current cycle 
features relatively lower levels 
of inflation and our best guess 
is that the Fed funds rate will 
move to S per cent over that 
time period." 

■ The Bank of England pro- 
vided UK money markets with 
£1.176bn assistance, at estab- 
lished rates, after forecasting a 
£1.15bn shortage. Overnight 
money traded between 3 Va per 
cent and 5'-» per cent 


■ OTHER CURRENCIES 


Nov 14 


Closing 

mid-point 


Austria 

iSchl 

17J477 

Belgium 

(BFr) 

50.3523 

Denmark 

(DKi) 

9.5677 

Finland 

(PM) 

7.3803 

France 

iFFrt 

8.4242 

Germany 

(DM) 

2. 4491 

Greece 

(DD 

377.127 

Ireland 

(1C) 

1.0189 

Italy 

(U 

3514.45 

Luxembourg 

(LFn 

60.3523 

Netherlands 

tFfl 

2.7485 

Norway 

INK/) 

10.7029 

Portugal 

<Es] 

249.622 

Span 

tPti) 

203.731 

Sweden 

(SKrj 

11.5451 

Switzertand 

fSFri 

2.0575 

UK 

(E) 


Ecu 

- 

1.2861 

SORT 

- 

0.921511 

Americas 



Argentina 

(Fesol 

1.5852 

Brazk 

(Rn 

1.3250 

Caryyfa 

ICS) 

2.1504 

Medco (New Peso) 

5.4656 

USA 

IS) 

1.5849 

Pacfflc/MMdle East/Africa 

Ausiralra 

IASI 

2.1097 

Hong Kong 

IHKS) 

12.2495 

India 

fRsl 

49 7381 

Japan 

<Y| 

155.994 

Malaysia 

IMS) 

4.0604 

Ne-.v Zeaiarrd 

INZS) 

2 5559 

PhJiootnes 

(Peso) 

38 5131 

Saudi Arafcra 

(SB) 

5 9443 

Singapore 

1SS1 

2.3376 

S Afnca iCorr. , 

1 (R) 

5 5840 

S Afnca (Fin.) 

(B) 

6.5298 

South Korea 

iV.'onj 

1263.25 

Tar.yan 

(TS) 

41.5145 

Thailand 

(Bl| 

39.6305 


Change 
on day 

Bul'ofTer 

spread 

Day's Mid 
nigh low 

One month 
Rate o+PA 

Three months 

Rale ni.p A 

One year Bank of 

Rate %PA Eng. Index 

+0.O31S 

394 - 560 

17.2890 17.1195 

17 2434 

03 

17.2315 

0.4 


_ 

1151 

+0.0527 

079 - 967 

50.5590 50.2400 

50.3223 

07 

502523 

0.8 

50.1123 

0.5 

117.0 

-002 

625 - 728 

9.5932 

9.5362 

9.5652 

0.3 

9.58 

-0.5 

92595 

0.1 

1109 

-0.0555 

706 - 900 

7.4520 

72470 


- 

- 

- 

- 

- 

895 

+00188 

208 - 275 

8.4511 

8.3953 

0422 

03 

8 4143 

0.5 

03462 

0.9 

109.7 

+0.0053 

481 • 501 

2.4571 

2.4451 

2.4477 

0.7 

2.4436 

09 

2.4113 

1 S 

126.1 

+0.56 

953 - 301 

381.921 

375240 

- 


- 

- 

- 

- 

- 

+0.0018 

162 - 196 

1 0326 

1.0168 

14)187 

02 

1.0184 

02 

1.0201 

-0.1 

1048 

+1035 

302 - 587 

2523.09 250121 

2520.05 

-2 7 

2531.45 

-2 7 

2581.95 

-2.7 

74.1 

+0.0527 

079 - 967 

50.5580 502400 

50.3223 

07 

50.2523 

08 

501123 

0.5 

117.0 

+0.006 

450 - 480 

2.7538 

2.7418 

2.7451 

0.6 

2.7407 

0.6 

2.7062 

1.5 

1207 

+0.02 

978 - 079 

10.7240 106600 

10.7029 

0.0 

10.7046 

-0.1 

10.7035 

0.0 

85.8 

+0.443 

400 - 843 

250.452 240358 

251.352 

-8.3 

254.532 

-7.9 

- 

- 

- 

+0373 

640 - 822 

204270 203206 

204.061 

-1.9 

204.726 

-2.0 

207.341 

-1.8 

85.8 

-00661 

356 - 545 

116216 11.4172 

11.5641 

-2.0 

11.6066 

-2.1 

*1.7511 

-1.8 

76.8 

+0.0091 

56 2 - 588 

2.0597 

2.0496 

2-0544 

1.8 

2.047 

2.1 

2.0047 

2.6 

121.4 

. 

. 

. 

. 

. 

. 


. 

- 

- 

802 

+0.0021 

955 - 667 

12899 

1.2827 

12881 

ao 

12862 

0.0 

12806 

0.4 

- 


Nov 14 


-0.0143 647 . 856 
-00145 231 - 269 


1.5965 

1.3332 


1.5847 

1.3231 


-0.0218 

494 - 513 

2.1675 

2.1494 

2.1494 

0.6 

2.1481 

0.4 

2.1467 

0.2 

-0.0346 

618 - 693 

5.4926 

5.4612 


• 

- 

- 

- 

- 

-0.0145 

B45 - 853 

1 5987 

1.5845 

1.5845 

03 

1.5839 

03 

1.5781 

06 

-00157 

064 - 109 

2.1233 

2.1084 

21118 

-1.2 

2.1 1-6 

-0.9 

2.1285 

-0.9 

-0.1109 

456 - 534 

12.3393 12.2456 

122405 

0.9 

122362 

0.4 

12.191 

0.5 

-0.4955 

216 - 546 

501440 407216 

. 

. 

- 

. 

- 

- 

+0057 

915 - 073 

150 650 1 55.640 

155-544 

3.5 

154529 

3.8 

149.404 

42 

-0.0291 

585 - 622 

4.0828 

4.0585 

- 

- 

- 

- 

- 

- 

-002 

532 - see 

2-5745 

2.5532 

2.5605 

-22 

25698 

-32 

2-5897 

-13 


87.1 
62 2 


33.6080 38-2500 - - - 

5.9887 5.9425 - - 

2.3495 23362 - - - - 

5.6220 5.5814 - - 

6.5659 6-5123 - - - 

1272.89 1262.85 - - 

41.7143 41.4988 - - - 

39.8470 39.6125 - ■ - 

?SDfl rwc ter (lev 1;. flaiitfo spreads m tlw Pcura See s rata sho -a or*i Sib last ouee decimal places Forward rates not directly 
mar-e: ti4 m i-npied tr, cun err flints sans Sceri+rg tic*, crieudend by die Bint o i Engfcmd. Base average I98S • 1003*1 Oder jnd Md 
Una aid 3* Dtflar Scot tat*a derived ten THE YAAREUTERS CLOSING SPOT RATES. Some values me rounded by die F.T. 


+0.1286 241 - 021 
-0 0545 425 - 460 
-00131 362 - 390 
-0.0477 814 - 866 
-0.0196 123 - 473 
-11 83 285 - 364 
-02698 988 -301 

-02093 125 - 484 


Euro pa 

Austria 

Betyum 

Den mark 

Finland 

Fii-nce 

Germany 

Greece 

Ireland 

IBUy 

Luxembourg 

Netherlands 

Norway 

Portugal 

Spam 

Sweden 

Swieenand 

UK 

Ecu 

SORT 

Americas 

Argentina 

Brazil 

Canada 

Mexico INe 

USA 

Pacifle/MIdtS 
Australia 
Hong Kong 
India 
Japan 
Malaysia 
New Zealand 
PMi prunes 
Saud) Arabia 
Smgapore 
S Africa (Com) 
S Afnca IFm.) 
South Korea 
Taiwan 
Thailand 


Closing 

rmd-pcini 

tSch) 

10.8825 

(BFr) 

31 7700 

IDKr) 

6.0368 

IFM) 

4 6667 

(FFr) 

5.3153 

ID) 

1 5453 

IDO 

237 950 

no 

1.5SS6 

(U 

15B6 50 

ILFrl 

31.7700 

IF1) 

1 7329 

INhr) 

6.7530 

lEsI 

157 500 

(Pta) 

128.545 

(SKr) 

72844 

iSFr) 

12982 

<Q 

1 5849 

- 

1.2324 

- 

1 47628 

(Peso) 

1.0002 

(RH 

0.8360 

ICS) 

1 3566 

i Peso) 

34485 

(Si 

- 

1 East/ Africa 

IAS) 

1 3312 

(HKSl 

7 7289 

<Rs) 

31 3825 

(Y) 

904250 

(MS) 

2.5619 

(NZ5) 

1.6125 

(Peso) 

24 3000 

(SR) 

3. 75GG 

ISS) 

1.4749 

1 (HI 

35233 

(FD 

4 1200 

(Won) 

797050 

(TS) 

201938 

1B0 

25.0050 


«0V 14 £ S 

173.436 - 11X733 UBA9Q - 109 590 

Iran 2HSLGJ - 30303 174&G0 - 175080 
iwart 14733 - 0 4.-43 02987 - 02992 

37354-^3196 235320 - 235600 
Russo 4S6232 - 45x707 313100 - 313480 

If Ac. 55169 - 5 5226 3871 S - 36735 




Change 


B<d ’Oder 
spread 


Day's mid 

fs.jh low 


One month Three months 
Rate ^iPA Rale ~?PA 


One year XP Morgan 
Rate 56PA Indax 


+0.118 800 ■ 8S0 
-0 32 500 • 900 
+0 067 350 - 385 
+0.0074 fir ■ 616 
-0.0598 145 - 180 
-0 0173 450 - 455 


OOO 


+2 5 900 
-0.0167 549 . 50? 
+20.8 600 ■ 700 
+4.32 500 - 900 
-0 0194 J2U - 33J 
-0.0735 SIS • 545 


600 

570 


-1.7 400 
•1.395 520 
-0.0244 803 - 885 
+0.0174 977 - 987 
-0 0145 845 - 853 
-0.0132 321 - 326 


31 8000 31 5100 
6 0365 5 9814 

4 6807 4 6225 

5 3190 5 2655 
r 54£0 « 5316 

239 920 236 GOO 
i 5700 I 5524 
1587 75 1567.95 
31 6000 31.5100 
i 7324 1.7195 

6 7625 6 6847 
157 510 155 200 
128 760 127 450 

7.3000 7.1714 


1.2987 
1 6967 


12840 
1 684? 


12430 1.2321 


+0.0001 001 - 1)02 
-0.0015 350 - 37Q 
-0 0014 555 - 570 
+0.0095 470 - 500 


-0.0005 284 - 294 


1 0002 1 0000 

0 3380 0 8360 

1 3575 1.3351 
3 4500 3.4430 


1 3333 1 3277 
7.7095 7 7285 


-0.92S CCO ■ 500 98 4900 97 6800 

+0.0045 614 - 624 £.5630 2 557-0 

-0.002 113 - 139 1 .6139 1 51 12 

♦0.3 500 - 500 24 3500 24.25C0 
-0.0002 504 - 507 3 7507 3 7504 

-0.0051 744 - 754 
+0.002 225 - 240 
+0025 100 - 300 
-02 000 - 100 


1.4764 1 .4704 

3.5315 3.5225 
4 1200 4 10CO 
797.400 796.600 


+0.045 000 


10 882$ 

00 

10.8833 

0.0 

10.8075 

07 

104.4 

31.78 

-0.4 

31.7175 

0.7 

31 56 

0.7 

1000 

6 0391 

-0.4 

60433 

-0.4 

6.0688 

-05 

1004 

4 8549 

0.5 

4.6=22 

0.4 

4.6507 

ai 

835 

5.3166 

-03 

5.3126 

0-2 

52978 

0.3 

1001 

1.5442 

0.4 

1 5427 

07 

1.5288 

1.1 

107.1 

238 22 

-1.4 

233 775 

-1.4 

241.025 

-12 

603 

1.5555 

0.0 

1.5557 

0.0 

1.5426 

08 

_ 

1590.25 

-2.8 

15972 

-2 7 

1631.5 

-2.8 

74.7 

31 78 

-0.4 

21 7175 

0.7 

51.56 

0.7 

1001 

1 7325 

0.3 

V7303 

0.6 

1 7187 

09 

1007 

5.7597 

-1 2 

6773S 

-1.2 

63 

-07 

909 

152.025 

-4.0 

159.15 

-1.2 

162.75 

-3.3 

303 

1208 

-2.4 

132.565 

-12.5 

131.495 

-23 

805 

7 2976 

-2.2 

7.3229 

-2.1 

7.4294 

-2.0 

81.1 

1.2964 

1.7 

1^921 

1.9 

12705 

2.1 

107.4 

1.5845 

03 

1 5839 

0.3 

1.5781 

0.6 

807 

1.2322 

02 

1 2317 

02 

12314 

0.1 

- 

1.357 

-01 

1.3562 

C2 

1.3618 

-04 

S3, 4 

34495 

-0.3 

3.4512 

-03 

2.4507 

-02 

- 

• 

- 

- 

• 

- 

- 

95.0 

133TS 

-0^ 

13322 

-DJ 

*.3395 

-06 

875 

7.727 

03 

7.7265 

0.1 

7.7544 

-0.1 

_ 

31.4675 

-33 

31.6125 

-2J3 

. 

. 

_ 

98 175 

30 

97.57S 

36 

34 79 

07 

151.1 

2.5527 

43 

2 5414 

02 

06149 

-2.1 

- 

1.61 35 

-0.7 

1.6*54 

-0.7 

1.6237 

-05 

- 

3.751? 

-0.4 

3.755 

-06 

3.7746 

-a.6 

_ 

1.4726 

1 9 

1 4679 

i.9 

1.45C4 

1.7 

- 

3.S379 

-5.0 

0535 

-02 

07266 

-58 

- 

4.1425 

-6.6 

4.19 

-6.8 

4.425 

-7.4 

_ 

500.05 

-4.5 

803.55 

-3.3 

3Z2.C5 

-3.1 

- 

202138 

-0.9 

26.2535 

-0.9 

. 

. 

- 

25 0775 

-3.5 

25205 

-35 

25.685 

-2.7 

- 


to die 

in both 


TSOfi raa tor Nov 11. Mbttor spreads « the QM Spo: atdf anon orty me las : rhree dec«-Jl ptoses Fcr/rard -Zas are r41 d-esfy sixsaa a the marVal 
but are raped by cuient rawest rates. UK. bowna S ECU are quoted n US cunenc, J.P. -Mcigan rcv+rai >ro=e* (lav 11 Base average '9S0=.'0Q 


WORLD INTEREST RATES 


MONEY RATES 

November 14 • Over 
roght 


One Three 
month mtha 


Six 

mflw 


Belgium 
week ago 
France 
week ego 
Germany 
weak ago 
Ireland 
waek ego 
Italy 

week ago 
Netherlands 
week ago 
Switzerland 
wreak ago 
US 

week ego 
Japan 
week ago 


4% 

43 

Sft 

5)a 

4% 

48 

6V+ 

64 

54 

3* 

5% 

5% 

54 

H 

644 

58 

4.93 

4.85 

6.15 

025 

458 

455 

&15 

025 

5ft 

514 

544 

&u 

5i 

5W 

544 


« 

8U 

84 

9 

6* 

8U 

8% 

94 

454 

555 

5.25 

5.36 

454 

555 

034 

036 

391 

3S 

38 

A% 

3% 

38 

4 

416 

4} 

54 

544 

84 

4« 

Si 

:5* • 

■ Si 

2* 

2 Vi 

214 

24 

2tt 

Tk 

24 

24 


One - 

yw 

: Lombi 
Inter. 

., DfS. 
rate- 

ftpo 

ram 

814 

r;40 

' -4JS0 


»4 

7.40 

ASB-- 


644- 

550 

■ 

075 

84 

sot; 

- ■ 

.070 

5.80 

000 

4 Jo . 

455 

5.60 

.850 

'am' 

A85 

7* 

- 


8JS- 

7ft 

•- 


625 


!* 


.93-- 

m •; - 
5.75 

SJ8 

4W 8326 
43 8.625 
8«- ' - 
6i- 

2«4 

23i 


TM 
JJSO 
■ S.25 ’ 
025 
3.50 
AS0-\ 
430’ 
AM 
175 
175 


020- 
mo ; 


■ 8 LBOR FT London 


ItUarttank Ftaring 

344 

53- 

614 

644 

- ‘ -■ 

week ago 

534 

5a 

6’A 

8* 


US Dote CDs 

620 

5.52 

SOT 

054 

1 '— ' '• - 

week ago 

- 550 

047 

G.85 

8.51 


SDR Linked Da 

3» 

34 

344. 

4 

- ’ - - ' 

week ago 

334 

3ft 

. 344 

4 

** - w ...“ 


ECU Utad Oe mid rewee » rah: Site 3 me* 63: « nan*: e^i year- Wfe* MOW A** 

rm ere aflarad mm to sittn quoad to tea mart* by iky re tomw tertra at 11am eactnaortteg 
day. The banka ana: Samara Trust. Bank of Tokyo. Banteya andNa tewl WjMIbWW. , ■ • 

Md ram are mean lor Sta domestic Menay Rates. LB S CD* and SDR LHttd Dapoats PW- 


EURO CURRENCY INTEREST RATES 

Nov 14 Short 7 days One Three 

term notice ' month months - 


Six 


■One ' 

yw 


Belgian Franc 
Danish Krona 
D-Mark 
Dutch adder 
French Franc 


43 - 4{1 43-43 
5ft - Sft 5ft - 5ft. 
5& - 4Q 5 - 4% 

■5 - 4% Sit - 43 
5* - 5*4 5, 7 « - 5A 

Portuguese Esc. 9& - Sft B - 8ft 
Spanish Peseta 7 & - fi« (i« - 

Storing 5 - 4ft 6A - SA ' 

Sets* Franc 3ft - 3ft 3/« - 3& 

Can. Dofiar 5-43 5ft - 4J| 

US Dote 4ft - 4* 5*4 - 5*8 

Italian Ua 3 - 7ft 8ft - Bft' 

Van 2ft - 2A 2ft - 2W 

Asian SSng 2\ - 2h 3 ft - 23 


4» 

-4S 

5ft 

-5ft 

■5ft 

■5ft 

-6ft 

- 8. 

aft 

-5ft 

Sft 

-6ft 

6ft 

■Oft. 

7ft 

-7 . 

6 - 

4ft 

6ft 

-sft 

Sft 

-6ft- 

5ft- 

6ft 

5ft 

i-5 

5ft 

-5ft 

Sft 

■3ft 

3ft- 

5ft:- 

5ft 

-s& 

5ft 

-5ft 

5V 

-5ft- 

6ft- 

Sft 

9ft 

-9ft 

10ft 

• aft 

10ft 

■1«, 

10ft- 

10ft 

7ft 

-7 ft 

a - 

7U 

sft 

■8ft 

9ft. 

« 

5tt 

-5ft 

aft 

-6 . 

6ft 

-eft 

7ft- 

7ft 

3ft 

-3ft 

4 - 

3% 

4ft 

- 4 

4ft- 

4ft 

5ft 

-5ft 

5ft 

-sft 

6ft- 

:6ft .. 

7ft 

-7 

5ft 

- 5ft 

512 

-6ft. 

-Sft 

- 6 

6ft- 

8ft- 

8ft 

-8ft 

8ft 

-aft. 

Q - 

aft . 

9HC 


2ft 

-2ft 

2ft 

-2ft . 

2ft- 

Ai 

2H- 

av 

3ft 

-3ft 

3ft 

-3ft 

3ft. 

■3ft 

4ft. 

-4 


Short rami mas are ad tor the US 

■ THREE MOUTH PIBOft 


and V«n, others: mo days* nodes. 

(MAT1F) Parle mta^arft offered rate 



Op«n 

Sett price 

Change 

«flh 

Low 

Bjt. voi 

Open bit 

Doc 

BJJ27 

94J26 

-0.01 

9428 

9426 

4.090 

49258 

Mar 

9084 

9083 

-0LO1 

93.67 

9X82 

5,410 

30034 

Jim 

93.44 

93.44 

- 

93.47 

83.42 

4,326 

30,076 

Sep 

93.12 

93.12 . 

+001 

93.14 

9009 

2OT4 

20^434 


P- 


m THREE MONTH EURODOLLAR (UFFg* Sim points of 10096 


Open Sett price Change hSgh Low £at vol 

Dec 9097 +0.03 0 

Mar 8046 +0-03 0 

Jun 92.96 +0.04 0 

Sep 92.58 +0.04 0 

H THREE HONTH MUHOMMK WTWMES (UFFE)* DMIm poMs Of 100M 

•Open frit 
2470 ■ 
’1386 - 
■ 354 
61.- 


Open 

Sett price 

Change 


Low 

Eat vol 

Open InL 

Dec 

84.84 

9484 

+0.01 

9425 

9483 

8353 

141515 

Mar 

94.65 

9485 

+002 

34.66 

94.63 

1B7B8 

172629 

Jun 

94.30 

9430 

+002 • 

9421 

9428 

12704 

117492 

Sep 

93OT 

9322 

+004 

9X94 

90 89 

9085 

82426 

M THRB HWTH BIROLRA DiTJMTB WTURMS (UFFE) LI 000m polnta Of 100% 


Open 

Sett price 

Chengs 

High 

Low 

EeL vol 

Open tnt 

Dec 

9124 

9123 

+0.03 

9128 

’ 91.19 

4064 

33334 

Mar 

90.B2 

BOOT 

+0-09 

90.70 

- 9060 

2743 

34036 

Jun 

90.11 

9013 

+007 

9013 

90.08 

802 

16184 

Sep 

89.B5 

89-68 

+007 

89.70 

69.62 

655 

21261 

■ THREE MONTH EURO SWISS FRAMC FUTURES (UFFE} SFrlm points of 100% 


Open 

Sett pice 

Change 

• High 

Low 

. Eat vd 

Open int 

Dec 

95.96 

9097 

+001 

9098 

9096 

- 723 

19284 ' 

Mar 

9074 

95.73 

+0.01 

95.74 

9071 

1357 

20361 

Jun 

9529 

9040 

+002 

9041 

9038 

611 

5052 

Sep 

90tB 

9524 

+OOI 

9005 

96.03 

221 

2371 


m THROB MONTH ECU FUTURES (UFFEJ Ecu 1m points of 100% 



Open 

Sett price 

Change 

High 

Low 

Eat voi 

Open Int 

Dec 

93-99 

9098 

. 

9099 

9098 

351 

8496 

Mtr 

9062 

9063 

+0.02 

9063 

9060 

389 

7529 

Jun 

9012 

9014 

+003 

9013 

9009 

243 

4180 

Sep 

92.64 

92.66 

+0.03 

92.66 

9X80 

182 

237B 


• LFFE funreia trwtod on AFT 


EXCHANGE CROSS RATES 


Nov 14 


BFr 

DKr 

FFr 

DM 

l£ 

L 

Ft 

NKr 

Es 

Pta 

SKr 

SFT 

£ 

C$ 

t 

Y 

Ecu 

Belgium 

(BFr) 

100 

19.00 

1073 

4.864 

2022 

4993 

5.454 

21.25 

495.7 

404.6 

22.92 

4.085 

1.986 

4270 

3.148 

309.6 

2.554 

Denmark 

IDKr) 

52.63 

10 

6.805 

2.560 

1.084 

2628 

2870 

11.18 

260-9 

21 23 

1206 

2150 

1.045 

2247 

1.857 

163.0 

1344 

Ranee 

(FFr) 

59 77 

11.38 

10 

2907 

1-208 

2984 

3.260 

1270 

2903 

2413 

1070 

2-442 

1.187 

2.552 

1382 

185.1 

1.527 

Germany 

<OM) 

20.56 

3.906 

3.440 

1 

0.416 

1027 

1.121 

4.369 

101.9 

83.16 

4.712 

0.840 

0.406 

0.878 

0847 

6066 

0585 

Ireland 

(ID 

4948 

9.398 

8.275 

2.406 

1 

2470 

2697 

10.51 

245 2 

2001 

11.34 

2021 

0382 

2112 

1.557 

153.1 

1263 

Italy 

(U 

2.003 

0.381 

0.335 

0.097 

0.040 

100. 

0.109 

0.426 

9.928 

8.103 

0.459 

0.082 

0.040 

0.088 

0.063 

8.201 

0051 

Netherlands 

(Fll 

18.34 

3.484 

3.068 

0892 

0.371 

915.5 

1 

3.897 

90.90 

74.18 

4.202 

0749 

0.364 

0783 

0.577 

5077 

0.468 

Norway 

(NKr) 

47.06 

0941 

7.873 

2.289 

0951 

2350 

2586 

10 

233 J 

190.+ 

10.79 

1.922 

0.935 

2009 

1.481 

145.7 

1202 

Portugal 

(Es) 

2017 

3833 

3.375 

0.981 

0408 

1007 

1.100 

4.287 

100. 

8131 

4.623 

0324 

0.401 

0861 

0.835 

6246 

0315 

Spate 

fPta) 

24.72 

4.697 

4.135 

1OT2 

0500 

1234 

1.348 

5.253 

1225 

100. 

5.6G5 

1.010 

0.491 

1355 

0.77B 

7633 

0631 

Sweden 

(SKr) 

43.63 

8.290 

7.300 

2122 

0882 

2179 

2380 

9272 

2163 

1705 

10 

1.782 

0.667 

1.863 

1-373 

135.1 

1.114 

Switzerland 

(SFr) 

24.48 

4.651 

4.095 

1.191 

0.495 

1222 

1-335 

5202 

121.3 

99.03 

5310 

1 

0.480 

1.045 

0771 

75.79 

0.625 

UK 

(0 

50X5 

9-567 

0424 

2.449 

1.018 

2514 

2748 

10.70 

2493 

2007 

1134 

2.067 

1 

2.150 

1385 

156.9 

1288 

Canada 

K» 

2042 

4450 

0918 

1.139 

0473 

1169 

1277 

4.977 

1101 

94.74 

5367 

0.057 

0465 

1 

0.737 

7231 

0598 

US 

(S> 

31.77 

8.036 

5 315 

1545 

0.642 

1566 

1.732 

6.751 

1573 

128.5 

7-281 

1288 

0.631 

1.356 

1 

88.36 

0.811 

Japan 

CO 

32-30 

6.137 

5403 

1.571 

0.853 

1613 

1.761 

6.863 

1601 

130.7 

7.402 

1.319 

0.641 

1-379 

1.017 

100. 

0825 

Ecu 39.15 7.439 8.551 1.004 0.792 1955 2.135 SOTO 1941 

Darash Kronor. French Franc. Norwapan Kranre. and 3»aten Kronor per 10: Bdgian Franc. Yen. Escudo. Ua and Paaaia 

1504 
pw IDO. 

B.974 

1.800 

0.778 

1.872 

1233 

1212 

1 



MEMBER IFA 


Margined Foreign Exchange 
Trading 

Fast Competitive Quotes 24 Hours 
Tfet: 071-815 0400 or Fax 071-329 3919 


M D-MARK FUTURES (IMM) DM 125.000 per DM 


gMM) Yen 12.S par Yen 100 



Open 

Latest 

Change 

High 

Low 

Est vol 

Open int 


Open 

Latest 

Change 

High 

Low 

EaL vol 

Open UK. 

Dec 

0.6S24 

03477 

-0.0082 

0.6527 

0.6472 

13.043 

91,845 

Dec 

13261 

1.0188 

-03086 

13261 

1.0183 

9.741 

88200 

Mar 

0.6505 

0.6490 

-0.0058 

06505 

0«66 

199 

8247 

Mar 

1.0285 

1.0270 

•0.0089 

1.0295 

1.0289 

535 

8469 

Jtsi . 

- 

0.6518 

• 

- 

0.6518 

79 

1.315 

Jun 

- 

1.0468 

+0.0019 

- 

- 

2 

715 


M SWISS FRANC FUTURRS QMM) SFr 125,000 per SFr 


M STERLIHO FUTURES (IMM) CB2.SOO per £ 


Dec 

07796 

0.7728 

-0.0079 

0.7798 

07723 

9OT6 

44.108 

Dec 

13936 

13874 

-0.0080 

1.5942 


5330 

48.732 

Mar 

0.7787 

07783 

-0.0082 

0.7787 

0.7782 

186 

2313 

Mar 

13904 

1.5870 

-00056 

13904 

1.5862 

62 

755 

Jut 

- 

07820 

- 

- 

07820 

7 

208 

Jun 

- 

13850 

- 

- 

1.6850 

2 

17 


LONDON MONEY RATES 

Nov 14 Over- 7 days 

night 


One 

morth 


Three 

months 


One 

year 


kitatank Serttog 5ft - 3*7 5Vj - 5 5ft - 5ft 8ft - 6ft 6S - 6H> 7ft - 7ft 
Sterkno CDs - 5>J - 5ji 6 ■ 9% 6ft - 6ft 7^ - 71 b 

Treastny BAs - - 5ft - 5ft S|J • 53 

BarkBBc - - Sft ■ 5ft 83-53 6,i ■ 8,ft 

Local authority deps. 4}J - 4fi 5,’« - 4}J 5|i - 5ft 6ft - 6|| 9ft - 6ft 7ft - 7> 4 

Discount Market (kps 5 - 4ft 5ft - 4]| - 


UK dewing dank base lending rale 5ft per cent tarn September 12. 1984 
Up to 1 1-3 38 6-9 

month month months 


9-12 

months 


3ft 


3ft 


Certs of Tax dep. (£100000) 1ft 4 3ft 

Carta of T« (Mp. infer El 00000 a t >2PCOctieM) totomn tar cash ftpe. 

Awl Under rare of <Sxaw4 &6I66PC. ECGD Ihedrala SHg. Export Ftoanc& Make up day Oct 3l. 
1B04 amed rate tor penod <+cn X. i«« to Dec as. taw. ecnemoa n 4ur TJOpo. Raferenee me tot 
. 799+ to Ora 31. 199J. Scnemea IV 4 V SJtoapc. Finance House Bose Rare Spc *om Nov 


1. 1994 

■ THREE MONTH STERUNQ FUTURES (LIFFE) £500^100 points of 100% 



Open 

Sett price 

Change 

High 

Low 

Est. vol 

Open Int 

Dec 

9337 

33.58 

-0.01 

9056 

9054 

13617 

144110 

Mar 

92.78 

92.75 

-0.02 

92.78 

92.68 

21419 

74980 

Jun 

92.16 

92.16 

-0.02 

92.17 

92.09 

6659 

58710 

Sep 

91.74 

91.74 

•0.02 

91.75 

91.66 

4529 

57012 


Traded on APT. AJ Open raerest Igiaefer prarious day. 


M SHORT SloniHC OPTIONS IUFFE) £500,000 poferts of 100% 


Strike 

Price 

Dec 

- CALLS ~ 
Mar 

Jun 

Dec 

PUTS 

Mar 

Jun 

9350 

0.16 

a.05 

006 

008 

OOT 

1.40 

9375 

004 

002 

003 

021 

1.02 

1.62 

9400 

001 

0 

0.02 

0.43 

135 

1.88 

Ere. traL uni, Caoa 8172 Puts 6882. Prmtoua doy-i open InL. Cala 

3482SZ PuM 213535 



EMS EUROPEAN CURRENCY UNIT RATES 

Nov 14 Ecu een. Rets Change % */■ from % spread Dtv. 

rates agamst Ecu on day cen. rata v weakest Ind. 


Netherlands 2.19672 Z14 6S6 +0.00021 

Belgium 402123 39.4041 -0.0089 

Germany 194984 1.01485 +0.00052 

Ireland 0808628 

Denmark 7.43879 

Franc® 053883 058566 +0.00347 

Portugal 192.854 195268 +0.105 

Spain 154250 159242 +0.083 


0795911 -0000377 

7.47840 -0.00256 


-228 

- 2.01 

-1.78 

-1.57 

053 

072 

125 

324 


5.65 

525 

011 

4.89 

2.69 

250 

1.96 

0.00 


11 

-4 

-6 

-8 

-23 


NON ERM MEMBERS 
Greece 264.513 

Hafy 1793.19 

UK 0786749 


29422S -0118 11.46 -728 

1984.66 *3.07 9.56 -5.77 

0.780096 -0002157 -005 4.12 

Ecu central ram set by die European Comrastan. Curranclee are in daioanckng rdanve (pengOt. 
P ereerttja «*mae» — tor 6cm potfee ctwnge denoree a weak oraency. Ofeergence «mn the 
rasa batman two apreadK die percentage ertwanoi between the anal marttet end Ecu centra ram 
for a curraicy. and dia maanwn panrsaed percentage dematam c4 m ewranem market rare tan n 


tr7/anz) Srertng and haaan l*a suspended bom ERM. Ai^uetmam catoUated by the Rnanoal Times. 


M PWLAPELPH1A SB £/S OPTKWtS £31250 (carts per pound) 


Stifle 

Price 

Dec 

— CALLS - 
Jan 

Feb 

Dw 

— PUTS — 
Jan 

Feb 

1325 

031 

6.55 

090 

0.09 

043 

0.74 

1350 

4.12 

459 

004 

040 

OOT 

1.35 

1375 

2.35 

2.95 

3.48 

138 

1.77 

2.25 

1300 

1.09 

1.78 

2.32 

2.33 

098 

045 

1328 

042 

a97 

1.44 

4.10 

435 

5.04 

1350 

ai2 

048 

084 

629 

063 

6.90 


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°Ol 


Previous day's vaL, Csfc 5213 Arts 5222 . Rev. aqra open mu. Case 4W Puts 434.511 


M mm MONTH BaiOOOUAB OMM) Sim points Of lOOSb 



Open 

Latest 

Change 

High 

Low 

Est. vol 

Open rat. 

Dec 

9096 

9098 

+0.02 

034)7 

9395 

3X884 

405388 

Mar 

9044 

93.45 

+032 

93.48 

93.43 

40461 

420373 

Jun 

9236 

9095 

+0.02 

92 98 

9094 

16.488 

304365 


BASE LENDING RATES 


Adah a company . — 5.75 

Alad Trust Bertt 575 

AS Baft 075 

•Henry Anshacher 575 

Sonkof Beroda 575 

Banco Bittrao Vizcaya... 5.75 

BankofCyprus 5.75 

Barf, of Ireland 575 

Bari, of India 6.76 

Bank of Scottnd 5.75 

BandaysBank 575 

BntBkdfMdEast..^ 5.75 
•Brow Shipley fi Co LB 5.75 
CLBankNedsrisnd... 575 

CttBnhNA 2.75 

Clydeedate Bank 5.75 

Tits CocpanM Bank. 575 

COiMSiCo 5.» 

Crefll LyonriSG 5.75 

Cvpus Popular Bank - 5.75 


% 

Duncan Lawrie 5.75 

Bator Baft LfenMd 8.75 
Rnand^&Gen Bank _ 05 
•Robert Fterrtng 6 CD .- 875 

Orabenk 878 

•Cidnnesa Mehon 075 

HabfcBenkAQZunch.5.75 

•HantrtB Bank _5.75 

Heitafale&GenInvBk. 5.75 

•HDSanuaL -575 

C.Hoera&Co 525 

Hongkong AShanghaL 5.75 
JiBanHodgsBank...- 5.75 
•LeopoU Joseph & Sons 5.75 

Lloyds Bank --5.75 

MeghraiaanklJd 5.75 

MKiandBank 5.73 

•MoudBaiMig 6 

NafWertninsta' 5.75 

•Res Bretheis 5.75 


* Haxhurghe Guarantee 
Corpor^onUmtedbno 
tangeraufwnaedaa 

a banMng toeUkdon. 8 
Ftoyaf 6k of Scotland ... 675 
•Smith S VWBran Sacs . 6.75 

TSB 5.75 

•UVBdBkOfKimat— 5.75 
Unity Trust Bar* Pic ... 9.75 

WnslnmTms! — 5.75 

WWleawayLaktaw.... 5.76 
VoriohroBank _6.75 

• Mahtara of London 
InwaEtment Banking 


HUS TREASURY BILL PUTIMBS QMM) Sim per 100% 


Dec 

Mar 

Jui 


9425 

94.00 


9425 

94.01 

9320 


+ 0.01 

+ 0.02 

•002 


94.55 

9421 


9424 

94.00 


388 17,110 

54 10.082 

30 5205 


Al Opart biHreai fige. an tor previous day 
■ fiURORMHK OPTIONS (UFFE) DMIm palms Of 100% 


Strike 

Prica 

Nov 

Dec 

CALLS - 
Jan 

Mar 

Nov 

9475 

009 

0.12 

008 

0.13 

0 

9500 

0 

002 

0.02 

0.05 

0.16 

8925 

0 

0 

0 

002 

0.41 


PUTS — 

Dec Jan 
0.03 
0.18 
a4i 


0.18 

027 

0.80 


EaL vot taU, CMe 9631 Purt 9114. Prevke n cfay’ a open mt, CrUh 274134 Pus 202324 
■ BfflO SWISS PHANC OPTIOMS (LIFFE) SFr 1m poms of 100% 


Mar 

023 

040 

0.82 


Strike 
Prica 
9875 
8600 
9825 

EsL vnL bU. CA 0 fta 0 PrewcM day * open «., C#» 2915 Pua 1765 


Dee 

- CALLS - 
Mar 

Jun 

Dec 

— PUTS 
Mar 

034 

ais 

012 

032 

0.18 

005 

007 

008 

0.08 

034 

0.01 

002 

aa? 

039 

0.54 


Jun 

0.47 

0.68 

087 


Currency or Bond Fax - FREE 2 week trial 

also daily gold and silver faxes AnnoW .,. 

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Comprehensive explanations of the oi( markets' 

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WE LSH HEALTH 

COMMON SERVICES AUTHORITY 
PROCUREMENT SERVICES 

As part of a review of its activities the Welsh Health c 

distribution of goods, supportute comofier?ri+ a ' :l,nS ' stora « e and 
informalion svslems and advisorv servi -tS IrUnagetnenl and 

deliven- and overall managet^^The wall for their future 
treated as lenders for an v particular serJ£T£^ b WlU n ° f dietnselwes be 
the proposals received vVill assist the Aulh^^ l ^ ?n ^Lr^f eVa,Ua,ion of 
programme and each specific conbJcl for wh^h ^ * 1 ^ 8 its tender 
will. If nectjssarv, be the tubiect n( °^ ra are *0 be sought 

*e European Comnlunilia, IlKtVolTi 
with die applicable regulations. pUt 0 1 lerK *er m accordance 

Expressions of interesi should be made in writing to: 

Nigel Kirk, Chief Executive 

Se^-ices Authoritv 
CrtcWvoweU House, Pierhead Street 
Capital Waterside. Cardiff CF1 5XT 
(Tel: 0222 500500 Fat: iJ222 5025(C) 

C»S^fl™!iS-,7d^ 0 '’" in ' d ,r ° m M ) =«8S. Director of 

Thcao^DCotor^Reerip.o,^,^ „ „ ^ ^ ^ 


4 


fi 













EUROPE 

AUSTRIA (NOV 14 / SOl| 


-tozan 
-15 1.270 
-2 BM 
♦S4Z9g ; 
+6 1.713 
-0 1.307 ; 
-4 744 

-9 1*67 

- 1.K0 

+ 1 498 

-- 250 
-? i.t 60 

— <*06 
-12 791 

+4 bOO 
-18 4.M0 


Ba * awuRB,B0 W« W» 14 / Frs.1 


ACHmns 4JB5 
Almanf 7.760 
flfMd E.D50 
SSL 4.270 
BUnLx 16*00 
BGnLPt wm 
BnoNS 30BSO 
Ban* z*io 

_ 23*25 

gRpm 12. <25 

me zgio 

Cooeue 5*00 
CcW 1B4 
7.170 
1*94 
5.590 
BtnAC 2*00 

FW*a 2*40 

Sf 3-8*0 

gg*fr 3*80 
BBQp 1*60 
Genta, 7,520 
Gtawrt 9.040 
(MM 4*00 
InUTMU 2. BOO 
Krflbnk 6.160 
KbftAFV 6*30 
Mainer 6.100 
MU 1*62 
PanLux 19.775 

PfflTO 9*40 
Punfln 2,920 
«3*i 460 

ggOTl 4.750 
gygy v 4.5w 
SojQnB 2.105 
SOWFV 2.165 
Sofltn 13*50 
Satwac 1*55 
Sofcny 14*25 
Tnaa 9*80 

ucs 


jij *50 3.70b 1* 
-SO 0*90 7.350 31 
*50 * 300 4.0Q0 
*20 4.580 3 090 4* 
*25 18 880 is.sm 
* 300 26*50 22.025 2* 
" r «J7I 34 0*i 60 

2.105 1 3 
-70Q 28500 20350 1 7 
'|g 'UTS H.775 3* 
-35 2,700 2.1 9Q 3.4 
*90 6.200 5*00 4* 
-1 215 154 6 7 

-10 6.800 6.100 17 

1 . 1 * 21 
-2D6.ra0S.1l0 7* 
J-TBI 2*70 4* 
*10 2.670 2,380 
*15 4.500 3,625 51 
• a 3.550 5.0 
.... 1,680 1,200 2* 
*30 0.180 7.140 6 7 
-40 <0600 0.720 1* 
-30 5.550 4.160 2 7 
-5 3.885 2.750 5.1 
-10 8.200 5.61 D ZO 
... 7*50 0.090 1 g 
. - 6.400 5. BOO 4 3 
-8 1.630 1*50 7.0 
... 19*0016 000 .. 
-50 10.775 9.250 2* 
-10 3*60 2.620 4.6 
-0 588 430 3£ 

—ID 6.200 4.250 4* 
_. iSSO 4.320 4 4 
*36 2.836 2.02S SZ 
-WZS36Z01S 5.1 
....15.7001 1*9) 4* 
1*75 1.450 8.7 
-7517*50 1J.7B0 4* 
-30 11*00 9*20 *3 
-26.100 22200 24 
-35 2,930 2.440 4* 


DSMARK (Nov 14/ Krl 


/MPA 600 

BftUm IBB 

CBrtA 275 

Coban 5/450 

D/S12A 103*00 
ontai 208 

BwDs*. 318 

EAatai 145 

aSB 433 

BTttoro 540 

tss B 187 

JHrtuf? 3S0 

LrtZnS BOO 

HHTTA/S 325 

NufMB 652 

RadoB 30B4T 

SOOMA 616 

GoottsB 518 

Sun* 401 

TlJoDo 334 

ToOOan 700 

IMdnA 233 


.... 760 565 2* 

-2 281 17B Z7 

*10 333 250 1 1 

.... 7*00 5.300 O.B 
+500 136000 96.085 O S 
*3 228 l?5*n 1 3 
+3 4Z7 307 3* 
+1 203*6 140 62 

*4 815 375 ZB 
643 445 2* 

♦2 276 150 1* 
*3 425 330 ZI 
+1.12 1.650 89*. 0.4 
. 385 262 3.1 

*0 78391 480 0.7 

-2 482 279 18 

+1 615 40 7 0* 

*2 975 4T3 a6 
+* 485 321 2L5 
-1/42350.33 300 ... 
*101*72 610 I A 

-2 267 207*6 4.3 


98 ZD 
12< 1* 
54 _ 
35*0 1* 
141 Z* 
5. BO — 
45 2* 
502 1* 
100 D* 
140 1 9 
136 I* 
197 1* 
100 1.0 
287 0.4 
60 _ 
58 1/4 
54.10 1* 
41 .... 


1000 rr \ . 


. t* 


nNUUB(Nw14/MkS) 

AmwA 100 -4 154 

Conor 134 _ 176 

BUM 65 *5 IDS 

Ensc H <0*0 4900 

HulUt 147 .... 233 

KOP B.10W -05 1Z50 
K09KO 55.10 -.40 60 

KonuB 540 705 

Kyimn ISO +5 150 
•MtraA 148 -3 247 

MUttaE 14fl -5 250 
MebSA 200 -6 258 

Metese 204 -2 20Q 

MofctaP 685 +2 704 

0HU1VA 88.40 +.40 106 
PofrA 74 +4 104 

nuft 65 HE; 

B»nK 48 +1.40 5780 
Repoifl as -20 120 

StOonB 230 —5 256 

Tmpeil 15.70 -.10 31 

IIW 14 ._ 30.60 

vahrat 101 ... 129 


FRANCE (NOV 14 /F(0) 


218.10 -7*0 358 20250 .... 
615 -13 766 SM3J 

750 _ 814 855 2* 

430*0 +1*0 91342230 5* 
258.40 +1.10 330 217 113 
077 +7 710 570 44 

285 -1*026850 227 1.1 
548 -2 88344810 Z7 

2*35 +G 3,750 ZB80 3* 
947 -9 758 503 1-4 

1*00 +1 1.460 1,033 4* 

BS3 -81.15S 794 4.4 
I 188 -1 22050 156*0 5* 

192 L*0 21UQ15B BO — 
2-146 -26 2*15 1.711 2* 

185.70 +4.70 205132*0 4* 
1*25 -101*701*04 32 

454 -2 466 348 2* 

23Z10 -2*030000 20t 1* 
SIS -161*68 706 69 
473 -3*0 858 370 3* 
411 -6*0 488351*0 ... 
418*0 +1.50 737 370 14* 
5.750 -80 8.160 5*00 0.7 

723 +5 1*02 685 3* 

705 -ft 830 610 _ 
31Q -3.90 476 -302 1 9 
BIS -10 877 - 780 2* 
495*0 -2.70 749 418 3* 
71 B +2 740 509 ZI 
389 -7*0 435 MB 10 SJ 
317 -8 382 296 02 

257*0 +3 ID 282 181 1*0 
707 -231.0B8 BBS 

686 -13 886 H50 6.6 


Sfrfc -8 570 340 8* 

LVUM -7 709 480 7.0 

& J 5 +7 402 001 2 Q 

-1804919a 377 W 
,!£* ■» 60 1877010630 

NMMt -401SMW50 53 

225" .£P25 ^ ’ 348 5-“ 

- a™ 12 1d5 **■201803011210 02 

.. SSL 300 .... 280 164 

■■ raw 3 “-w? - ?i u 323 313 30 

■ fw£!L W "’■ 5o 535301*0 7* 

17D ,3 234U8S0 3* 

• KS 22? '! ra 7Mie 

• ‘10 1*05 786 ... 

T, £?i ”2 (-’SO 805 1* 

S™® 515 +1 604 35210 

OWM ~} aa 217 533,0 3-2 

£“£* T3 ®52 -1.SO 157 <0 11340 2* 

nutM 6W +2 752 543 1 3 

sue 690 -10 345 6SO 20 

SM«n 1624 3+90 1360 I 0 

, 047 -I 734 576 3.4 

- -28 1.7691*40 3 7 

Sj’S +12O«0WB71O 2T 

- ,7* 900 <72 22 

.. *£!£}? KJ-S*^ 50 B10W 50 7.1 

»!*0 43020 -1120 700 302 7.1 

Z050 -1BZ4701.7SO 

-2 792 5B3 3.7 

-8 Z60O 1.710 2* 

SWm 251.50 -10 5q 52gmin 

: TK 10 -90 377m a 4.7 

■■ JW.M -310ZJ7M16350 Z4 

■■ °- 4 F ‘20 3.120 2*81 1* 

£££? U 214 132.1(7 5* 

.. J.S?® *.io3E*H) rm. 10 3/s 

M5 TO -2J0 274 SO 12S» 3 1 

«3 +12 494 333 3.7 

475 +19 90 65O 427J0 S.5 

414 *6 800»a BO 

290 BO -3 30 300 221 3.T 

278 +2 335 2(0 3.4 

253 -2 W 355227)0 4* 

: GBMMflf fllw14/Dm4 

" AEC 153*0 ..198*0 140 1 1 

• AGHdtf 523 -2 636 490 3 3 

. AjMnflfl 1.035 -25 1.4461*00 \A 

L 3 *41 2*11 Z122 Q* 

Atuna 850 +3 59550 575 1.9 

AMO 730 -10 1.191 TOO 

' JSL2? 1 655 -10 1*25 815 l"l 

' jMSF. 3USO +.3PJ«* 1 276 2J 

’ “™ nV 4,JU ‘1*0 510 435 1 6 
' 35S _ 485 34550 25 

■ Bora 345.70 ♦ 70 404 ®3»10 3* 

' B0WH 41050 +3 52635050 35 

BMWBr 776 —3 B 2 B 639 1 6 

- BaverV 459 *7 575 306 Z8 

S?9“ .1*3* +9 1.105 615 1/4 

- BortKi 293*0 -1 34550 236 20 

0*0. 396.50 + SO 529 374 3.7 
BWBQ 831 951 750 1.6 

O^GPt 611 +11 1*30 755 1A 

CM8 1*05 -251*30 1.140 0.8 

Cmmra. 326 +2*0 390Z9Z5D 3.7 

Contnl 223 4-1 299 21? 1 D 

Otw 41950 +6*0 600 3BOSO 05 
pamto 771 -60 S04 609 1.0 

QOtusa 453 +1.50 f£8 428 1* 

01 Bab 236.50 -2J0286M 210 . 

Dtu-tiSk 754.50 +230567 5065850 2* 
DMWIK 154.50 IK 131 Z6 

436 -3 807 428 3 2 

BH7«* 303 +2 337 2ft0 1.7 

DnfllBh 409*0 ._ 4E65D 346 3* 

GBiE 560 +6 618 <65 12 

Crann 258*0 '+3 307 245 1* 

GMSCli 827 +17 828 500 1.7 

hanga H4 ... 245 180 ZB 
HeWDn 1.225 +34 1*80 1.141 1.1 

MnkalP 591 +6 661 582 1.7 

1*1*1 315 +4 440 307 3* 

H pCllM 920 1*69 867 1J 

HgM 326 -ZO 3665028420 ZI 

Htonno 861 -1 1*15 767 1* 

IgrtBn 206 _ 253 205 Z8 

IKS 2SZ +2 313 2S4 3* 

MWk 313 -2 433 325 24 

MB* 199*0 +430 169.80 131 .... 

KiWOI 587 +Z0 849 51S 23 
K**»f 461 ... 566 451 ZB 

KHJ 124 +1*01615011510 — . 

KKW*W 138 -250 179102.70 17 

Lnhmyi 635 600 615 Z4 

UMftn 824 -1 BSO 612 1.9 

unto dm -a ses 330 i* . 

LmoH 323 410 311 15 . 

LidM 204 +4*0 21650 157*0 — . 

LuflPI 186 +4 208 151 1* . 

MAM 410*0 +*0 470 376 1.7 . 

MAN PI 319 +1 367 285 2* 

Man nan 397.70 -260*8430 30 1J . 
ram* 6ee +1 822 eso 

MMBO 158.20 +1 30 286 101 5.0 

MuB»H| Z7B0 +60 3*17 2070 0.4 . 
PWA 240 +3 262 210 — . 

Pnranrn 506.60 +*o 530 483 3.0 . 

rasMi 656 +1 950 022 14 

Praam 448*0 +2 501*0 418 2* . 

RWt 481*0 +130 528*0 399 2* . 

HWE PI 375 +120 424 329 12 . 

RMME 1*50 -101*20 1*30 0* . 

WurnitB 288 +4 372 264 24 

RhnmPf 222 . _ 267 200 3* . 

tenth! 237*0 -*fl 313 232 ZS . 

t ees +9.70 LIBS) 068 1* . 

375 -3 438 350 1* - 

023*0 +4*0 799*8 B07 ZI . 

846 +14 8S5 810 1* . 

518 .... 560 480 1.2 . 

niyran 289 +7 3ZSSS6L50 ZI ., 

vara 325*0 +8 380 288 11 .. 

vena 621.10 +3*O59 Bl50 468 Z5 .. 

VEW 373 -*0 400 ST17 2* .. 

VrrWa 327 +1 415 316 ZB . 

W 4M^» SS J?Si! : 

l/WPf 383 +1 443 337 16 - 

3555 , ’« %£\i : 


+10 4*101875 .. 
+12511.100 8,700 9.9 
+105 U*J0 BJB1 5Z 
+15 1730 1*92 ZB 
+30 5.105 3*63 2* 
+200 3GJDD Z2ZS0 1.3 

+340NJ1K1E MO ll 
+35016.790 8*35 1.3 


jCTsajuas/NwH/Ri) 


KPXDpB 45. 
NMByd 59 
HIT onC 82.!® 
moron 9Q.io 
DoNGr 78 
Ptm 5120 
FnivGr 76.40 

Rooaco 1 12*0 

Bodmcn SOSO 
name iiG.40 
RS5 .sk! 82*0 
HtMch 189*0 
5«Df«f« 42*0 

un®0 168 Torn 
WMJ 170 
vnODofl 4ft 
WMDpR 120.80 


+20 79.70 54 4.7 

+120 11MB 9020 3* 
+.70 5140 42*0 Z3 
>1*0 223,8760 3* 
-20 47.20 32*0 3 9 
-20 62 3* 50 3 1 

.. .77.60 62*0 .. 
-2*015850105 GO 1.1 
+140 20817170 2* 
+2019*014*0 — 
-.10 25 1190 5.0 

- 2068.40 66*0 4 3 

+.70(0850 88.10 4* 
+20 5800 41.40 ZB 
-40 157.50 123 ... 

-SO 250 20550 14 

_ 335*0 264 3.6 
.. 63 40 50 IS 

+*0 0150 66*0 !3 
-40 4*70 34.70 ZB 

- 10 94.70 7Z10 0 2 
-.00 9850 74 70 Z3 
-1057*0 4000 21 
+ *0 5Z00 4210 0.0 
+.10 55*047*0 ... 

.... 57-20 43 30 3.3 
+ *0 B5.30 47.70 6 0 
-20 100 2D 72 Z4 
♦ JO 9140 66.75 .. 

. K0SO85.SP 30 
+.70 5900 40 D D 

+ 1.40 B4*0 70*0 1* 
+.60 131 111.4B 3.1 

- 10 66 49 SJ 6 1 

-.10,354011360 2* 

... 100*0 «T. 60 5J 
+1*0 21540 1U GO 4.5 
-80 50.30 40 30 1.0 
+4*8 236 17840 3 D 
-2 2031B4M ZO 
-20 56*0 45 22 

♦*013350101 JO 1.3 


+ 6 490 307 11 
-10 971 782 1.7 
+ 1 SO 1B01C3U i.B 
. 991 060 l.ft 

1,975 1*00 2 1 
+7 1417 1*63 21 
17S 11950 

+10 1.730 1.190 4 6 
♦40 5*40 3*70 .... 
-1 263 178 ft* 

-6 1,540 1 001 . 
-12613*4010.075 04 
♦40 7J70 5.160 0 6 
+55 2300 1 640 25 
*2 1*55 642 1 4 
-I 277 146 1J 

♦4 880 635 — 

+4 870 008 . 
-5 1*30 1.350 2.7 
-2 1.100 845 20 

-1 531 345 4.4 

- 50 259 166 4.5 

-6 819 564 1.3 
-11 817 515 1 3 
-23 800 735 . 
♦I 1.583 1*55 2 7 
♦2 832 564 25 

♦9 1*15 1.125 1* 


PACIFIC 

JAPAN M» 14 /Yen) 


Norway ptov 14 /Kronen 


78 +2 112 

Ml SO +50 175 
1250 +.10 19 90 
172 ... 186 

74 +3 SO 114 


- Kvnr 1 
.... LOTH 
— NMKya 
-.. M&niAl 

268 

61 

246*0 

170 

♦ft 

-2 

— 33a 

206 

+3 

— R-tMrA 

135 


— SagaAf 

77*0 

+*0 

- SegoBr 

74 


— Scntast 

74 

. _ 

.... SMB 

90 


.... Unary 

110 

-1 

.... VBdA 

» 

♦ « 

.. ViOTA 

61 

♦2*0 


GS 4* 
130 or 
11*0 
125 IZ 

64 . .. 

100 3.4 
757 SO 2* 
60 3.7 
208 1 4 
140 0.6 
1BD 20 
130 S.7 
7260 2 6 
70 27 
72 G 6 
85*0 1* 
110 24 
17*0 . 
55 9.4 


- SPAIN (Nw 14/ PtS.) 


—40 6.280 5,150 2* 
*60 6.700 4.700 81 
-5 3*35 Z7B0 23 
-10 3.400 2415 7 1 
♦5 4/475 3.975 4 2 
+11017.70014.000 4.9 
+10 6J21 4.400 S.6 
+10 1,435 700 281 
-20 3*90 2410 3 0 
... 5,110 3.400 27 
+16011590 7.610 24 
+30 2716 1.745 4* 
+45 1.775 1*10 1.7 
-10 3*60 2300 34 
+10 MOO 5.100 2* 
+161.100 703 5 3 
+29 924 416129 

+60 5,140 3,530 25 
+16 1*10 790 7.0 
-190 9*00 4*00 I.B 
+70 7.630 4.600 28 
+40 5.400 3.000 2 3 
-80 1250b 9.420 1.8 
+30 2*10 1.600 - 
+50 4*00 1805 28 
-4 355 102 0.4 

-11 696 351 105 

+11 815 595 5 9 
+150 4.450 2*05 31 
+202185 1*95 3* 
+11 738 549 7.7 

-70 2400 950 179 
+201,7101.150 5* 
+20 3.120 1.980 21 
♦58 3*80 2035 I* 


Z Sweden (Noy 14 /Kronen 


- ITALY (Not H/UTB) 




707 -23 1.008 BBS __ 

ms -13 886 B50 6.6 
7SQ -4 830 635 1.7 
3.460 — 3.487 2750 28 

1,775 2580 l.VoO 4.1 

580 —4 734 BSO 2-7 

9*5 +*5 18.70 M5 7 0 
107.40 +*0 1BZ 100 ft* 
671 +0 939 660 3.8 

4 930 -120 6*20 4*40 1.1 
35$ 70 +2 TP 576 350 3* 
2440 -38 2754 1*70 0-7 

300 —4*0 36323950 2* 
384 +7 S4G 343 3* 

431*0 '-2OAW0O 39ft 2-3 
572 —7 600 406 20 

404 -1*0 718 403 5.9 
791 +21 1.07B 057 76 

52.30 + 80 119 32 5 7 


-10 5*82 3*40 5* 
-170 3*85 2*41 
+7224501*25 1* 

+10029*5016*00 1* 
+30 12450 8.110 — 
+14 3.100 1*84 28 
+25 2*131*02 — 
4*0 23861.283 4* 
+19 2010 840 — 
-14 2*18 1*1B *1 
+14611274 MM 
+12*641,123 ... 
+36 7*30 4*71 1* 
-H5 4*20 2118 26 
■70 6.1B6 3,101 4* 
♦270 17060 IMM 5* 
+31 1*05 1*30 22 
-5044.72333033 0* 
+20 4*80 2Sre _ 
+2OO3DZ0D16JBO 1.1 
+116 8*80 5*36 1* 
+7QVW0ai70 __ 
+30 2430 2000 ~ 
+22513*46 8082 0* 
+80 2440 4,455 22 
-60 10350 1Z500 21 
+420 19.700 12210 1* 
-1 1*40 870 
+10 M4D1.7K) _ 
-30 B.1 00 3.440 1* 
— 3*851*70 
+300 3405017000 1* 
+6012180 7*00 23 
-5610.154 6.706 2* 
-1B1JW8 460 _ 
+05 8*50 4*06 21 
-100 7*00 4.146 — 


♦1*0 83 56 14* 

+250 85.75 5714 3 

♦7 680 250 IS 
+6 685 438 1.9 
+4*0 19856 15 OB 

+5 197 144 aa 
+2105*0 65 92 

+2 10830 7* 9.3 

+13*0 430 282 1 6 
+11*0 453 326 1.0 
+2 134 67 29 

+2-50 134 55 29 

♦3 110 76*0 ft 5 
+5 430 251 1* 
+1 89 38*0 2J 

+2 311 137 a* 
+5 312 178 3* 
+8 550 155 29 
+5 215 152 Z9 
*5 372 17 

-4.50 166 14 1.8 

-4*0 165 108 1* 

+2*0 165 102 3.0 
+2 156 09 30 

+2*0 164 722 . 

+1*0 188 124 32 
♦250 143 99*0 1* 
+2*0 142 6*0 1.8 

+2*0 73 38*0 .... 

+5196*0 97.50 1* 
+11 233102*0 1* 

♦13 475 351 1* 
+13 480 350 1.5 

+5 144 B5 ZO 
... 110 68 3.2 

♦ *0 122 02*0 3* 

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+3*0 175 10E 5* 


” SaSTZBOAMlINOV 14 /Ftb.I 


292 
*9 721 
+6 715 
-15 3*86! 
+71*49- 
+2 250 
-2 747 
-24 070 
-21 042 

-6 422 
-10 3.730 1 
__ 1.700 
+20 2*32! 
+20 1*45 


bum 1*80 
AWMr 646 
AMU 1.100 
Alp»EI 1*30 
AiYuyta i*oo 
Amaru 1*50 


ADM 412 
Anyanu 2*00 
MDnOI 4*90 


742 
1*10 
AsaJitO 462 


EKwtn 1.530 
Butir 


caw 1-750 

canons 3.000 


CtachO 529 
cnyoda 1.290 
OuyHI 644 
□uiuE Z430 
ChDPIun 999 
Choh* 2400 
Quo IB 1/140 
OzttWI 746 
CDinoa 704 
D-COtC 566 
DaU05 566 
DiM 1/430 
Dam* 1*00 
1.710 


DaUtvn 749 

Dnuru 746 
OHMMi 507 

DaiNPh l*4Q 
DaSMPr 1.730 
ONDInr 390 
. WauBP 785 
Dfc+fM 700 
DahueB 970 
DoftwH 1*30 
1.200 
2150 
804 
560 
1.700 
1590 
1*10 
4*20 
515 
2*20 
545 
2*40 
650 
420 
510 
750 
1.070 
ZOTtl 
1.030 
572 
746 
075 
603 
931 
506 
656 
580 
432 
566 
914 

manna <05 
HStwHE 782 
HJnoMI 925 

& ^ 
978 
767 

1.B10 

HIKoM 1.020 
HtMui >700 
HtMffl 1*60 
H1SM 665 
HCsen 545 
KokBP Z400 
HOkTak 434 
HUiflk 707 
HKuH> 2*90 
HonoaM 1.690 
HmnuP 632 
HsaFfl 1.930 

homcp z^o 

1*40 

zaeo 

isata 383 
•ran 1.6 W 
tefwrS 390 
HHCiAl 489 


IWYok 5*70 
IwlSuE 515 
bum iv 1.910 

^ iJSS 

304 
716 
401 
498 
1*20 
333 
745 

JBSmR 64fi 
JpWool 1.150 
Jusco 2*90 
KDD 10*00 

kagome 1.200 

mCSSi l£o 

Knonko 1.570 
Karan 347 
MncM 773 
KnmVU 528 
KralB Z3SQ 


.... 1.420 1.200 
-0 737 4ftB 
-10 1*10 991 1 
+40 1.560 070 
... 1*00 B91 
... 1. 690 1*70 
-20 744 560 

-101.700 940 
-4 634 402 

-10 B 500 3*20 
-10 6.840 4070 I 
. 1*50 1.000 
....1*50 1 000 
-12 811 590 

-10 1.300 1.040 
-9 629 410 I 
+4 513 380 
+14 679 550 
-1ft 996 665 
. 1650 1.260 1 
-3 B01 415 

+90 3*40 Z410 
-5 1.220 842 ■ 
+6 BOJ 43ft 

♦ 20 1*20 1*30 
-20 3.590 2.540 

.. 1.410 1*20 

♦ 6 611 315 

♦ 1 462 337 

-2 097 B41 

-10 69 3 490 
-3D 1.440 1,040 I 
+32 760 571 

-10 2.970 2.410 
-1 1*30 991 
«3D 2.760 2*30 
-30 1*70 1*10 
+ 1 684 237 

+5 098 699 
♦5 626 410 
-9 594 387 

+10 1.970 1.390 
-70 1.600 1*50 I 
+201060 1,670 
+10 1 BIO 1.400 
+23 1*20 600 
*16 1.220 716 
-3 010 551 

+4 570 415 
-10 1*70 893 
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.. 13 BO 720 
.. 865 680 1 

-4 1.120 051 
_ 1.710 1.310 
-10 1.070 1.220 < 

♦ 50 4*50 3*00 ( 
+10 706 645 1 

-2 6M 489 
+10 1*10 1.250 
.. 1.980 1.570 

♦ 101.180 993 
+40 4.940 ]*00 

-5 70ft 512 1 
.. 14501.920 
-2 603 *45 
-10 2.660 lOOO 
-6 736 E95 1 

-7 51 3 275 
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-7 1.040 71B . 

-10 1*70 990 
+30 2.500 1.850 
-10 1.180 HI 
-6 708 514 

♦11 933 735 

-. 1.060 MtB 
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+8 B39 440 
-15 734 602 1 
+1 640 577 

-7 525 430 . 
_ 780 551 . 

+1 1.150 795 . 
•a 550 386 1 
. 950 679 

....1*40 628 . 

♦ SO 6*30 5.650 . 

-1 676 568 . 
-1 1.120 812 . 
+4 946 712 

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-20 1.300 630 . 
+9 750 502 
.. 599 497 . 
_ 3.040 2360 

U « X . 

+ 1D 2850 2380 .. 
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+10 1340 1.810 1 
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+10 3 
-9 

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MHOT 559 
KJMBWt B32 
KMW 1.530 
UIWM 027 
ttm 1*50 
koboftl 310 
AHUM 850 
UXBa 1.900 
KOulYD 2*80 
Kiwmu 916 
kma 744 
KcmC 923 
Kubota 727 
KmQunu 450 
hurabo 413 
Rurara 1*00 
Kumta 509 
Runs 2*80 
K’ctn 7*50 
K'Ha$n 410 
Kyani 7JJ 
KyVrraH 949 
bSPW 2.440 
UonGo 645 
LflTmCi 1*70 
1*00 
90S 
1*40 
538 
760 
391 
1.710 
1*90 
1 *40 
1*60 
M3MCD Z540 
MataW 830 
MB20DM 556 
708 

MS 

Melon 690 
MtotCC 1*90 
BIS 
464 
830 
MSBOnk 2.170 
Mime 01 556 

MKM9 1*00 
MDEJec 702 
1.080 
507 
740 
527 
915 
944 
722 
457 
443 
MB 
IJTD 
MbWma 1.510 
uoaett 625 
M4SU 855 
MnEnS 329 
MUFua 1 DOO 
MnMar 746 
UaMnS 421 

408 

002 
857 
412 
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mhi 955 
MtamEI 1*60 
«4fy*- 570 


MnugM 542 
MmtS 1530 


M>ln 1,020 
NQk Sp 1*90 


NaiHsa 1.410 
Nawtw i*20 

UN 

Ncmrs 
HautCm 607 
MMIND 420 
NMPk 070 
Niual 449 

Nȣ4 1-000 

Nikon 935 

Nlond 5*00 
NpCtSk 610 
NgOrM 4m 
NnOhM 2*30 
NoSO 2.010 
NcEtpr 1.030 
Nunn. 670 
516 
1.730 
726 
566 
1.360 
680 
890 

rtprapi 747 
Noftum 1*50 
Nffinso 530 
NoSnar 961 
NpShS 527 
MSbnp 770 
NpSnrry 1.300 
1.140 
560 
382 
455 
TVNv* 22900 
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-8 615 519 

-IS 970 814 a 8 

_ 1.936 1*20 06 

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1*80 1*30 .. . 

... 33S 250 - 

+8 050 737 

-30 2.480 1.700 

♦ 10 2,780 2,150 

-4 897 732 

_ 767 805 

♦16 SC3 848 .. 

-4 767 SSl - .. 

-10 573 425 ZO „ 
+2 523 318 . . . 

.. 1*501.0(0 

-II 645 408 

-W33KWZ220 

-IQ 7*20 5*80 ... 

+S 555 375 1Z _ 

+1 899 730 — .. 

-51.050 905 .. .. 

+102*00*420 

+4 7B2 636 _ ... 

-10 1*30 788 

-10 1*40 966 0 9 ... 

♦ft 960 512 . . 

+30Z220 1.750 ... _ 
+2 580 428 .. .. 

♦23 900 730 2 0 .. 

-13 483 321 .. _ 

. 10101.420 1* . . 
...2*20 1.700 . 

_ . 1*20 1.500 . 

— 1*20 990 11 

+20 3*40 2450 . . . 

*2 9B0 711 . 

+B 046 397 . . 

-I 882 885 .. _ 

-11 732 5S7 ._ 

-2 792 582 0 7 

♦10 1*40 1.350 0 9 

-U 963 4B0 

♦10 503 386 . ... 

-ft 1*30 780 0 B 
+30 3*10 2.110 . _ 

♦ 2 584 42S 

+101.3301*20 - .. 

♦4 73fi 520 . 

+30 1.300 90ft 

+3 550 335 

-2 B33 603 
-7 5B4 304 

♦21*10 796 

-10 1*30 842 . . 

-0 792 487 
-3 SCO 407 . _ . 

-1 484 316 

♦9 60S 39ft 

-40 1.860 1.140 _ ... 

-101 BIO 1.450 . . _ 

-13 600 455 — . . 

♦ 11 885 672 .. .. 

-< <m 301 

-20 1.420 933 0 9 

♦ 1 890 723 00 -. 

-2 489 378 . - 

-2 453 337 . .. 

—4 040 570 .. 

-S 9*0 770 0.7 
-7 449 310 .. 77.0 

-101.400 645 - — 
+31.110 790 

♦ 40 2230 1*30 04 _ 

♦ 9 7B2 561 _ - 

+B 1.210 659 

. 2500 1.MS 0.4 . . 

-15 624 495 0.9 

-20 2.760 2.000 

+90 4.490 3.472 

♦ 101.310 658 . ... 

-10 1.170 96ft .. . 

. 1.4G0 1*20 . 

.. 630 395 ... 

*4 Ml 231 .. 

+2 939 566 ... 

-B 705 526 I* ... 

-5 787 «J .. .. 

-5 4B4 315 . . . 

♦10 010 602 ... .. 

.1.040 781 09 . - 
-4 588 401 .... 

+10 2060 1*90 

-10 l.l« SOT .. - 

....1*60 1.310 

-4 615 685 . . 

+19 BIO G38 ... 

-8 S60 400 0.7 .. 

-11 851 579 

-9 520 41? 

-201.440 Ml 0.9 
-2 1.140 BS5 .. - 

+100 7,500 5*40 .. - 

-ft 6.650 6*2 

-6 482 316 

+20 2130 1*10 

-so zjm i*ii 

♦ 10 1.110 537 

802 BSO 1.1 . 

+4 620 4fto .. - 

*202,190 1.650 0.7 — 
-ft B50 626 — _ 

-4 795 4 76 .. - 

: 

+$7 760 508 ... . 

+3 7BB <64 

_ 1.280 1020 1.0 
+ 15 617 4£o ,, ... 

-381.300 991 0.6 ... 

♦ 2 615 441 _ 

+181,110 742 — ... 

-20 1*40 1.300 .. 

...1,510 1.130 — .. 

+SD S88 335 _ 

-4 403 302 ... 

+5 534 34S 

+100 27.70018*00 04 .... 

■1.000 m » 741 JOT 

-9 530 364 .. 

- 6ft? 521 

-I 819 365 

_ 1*70 982 10 _ 

-3 834 349 .. ._ 


S«tBu 38ft 
5*EJe* 7.7IU 
Sham 1.770 
5HhEF 2,410 
Shinto £65 
Sh£K3i 1,990 
Shv« 972 
j-— r (JOT 

Shaun moo 

ShokJt 414 
SiMAlU 456 
ShwDsn Ml 
Shu/OW £39 
Shussfl 49Q 
ShwSnS 1.230 
Sk*v 2,010 
SnwfiW 785 

1st 5 -^ 

SumBM 708 
Sumer* 1.740 
5umCim 569 
SunCo 1,000 
SumB* 1.350 
BumJtvy 396 
SlPIUM 395 
SumMar 845 

SuflBM 342 
SymMtM 921 
SumQsa 453 

SumRn 587 

SumflCt 945 
ftwnTffl 1.230 
SunWha 730 
SibuH 1.170 

TDK 4.510 

Tafcwl 616 
IstuPB 1,700 
Takfie 

TkfaSh 
Pmava 1.350 

Tiuacn USD 

TanSai 

Tdui 

talh*l io« 
TekMn 77S 
Traces 696 
Ttsmna *05 

TonAr 595 
TodaCp B68 
Tom 740 

Tono 17,200 
TohkEP Z4SD 
JUMk 1.180 

TkUCb 429 
louco 520 
TaWoH 1.110 
IRyama 590 

1.400 

1*50 

TkDomc 1,790 

DHPw 2*00 

TkScn J. 170 
TWlftS 441 
TMtoofl 57D 
lkSa 2*30 
TVSlyl 1.570 
TVuQv 594 
Tku'jp BM 
TXiZna 480 


7sno£C 970 
TOiBMa 745 
Tsnku 
Tosoh 

Tam ,.«+ 
TovoCn <90 
TortuL ZOoo 
Tovotn 576 
Tomui 570 
ToioSh 3.270 
TyoOM 1110 
TurnTB 470 
ToroTB 1.050 
Toynoo 402 
TsCnMn 533 
Tcaum em 


Until 
Vidor 1.350 
utocaN 1.100 
YmanaC 1.210 
YnuttoU 873 
Yam5ac 699 
Ymrcra 1.870 
VmtHori 1.450 
YamKOQ 1.020 
YmTran 1.180 
YmAik 1.960 
Yanban l.Oro 

Y44hB 

Yaafir 
YaaTrft 779 
nv*B I*30 
YkrmBk 648 
YMunftJ 676 
Yomlnd 655 


-2 512 3BI 1.3 .. 

-40 8*60 7.430 — ... 

1,910 1.520 

-10 IBM 2*80 

-51,110 775 — _ 
-50 2*201,810 — - 
-15 1.040 640 -- 

1*801,130 - — 

+ 10 1*60 1.060 - .... 
♦ 1 536 40ft I* .... 

-I 610 411 - ... 

-4 3ft5 2S6 - 

-6 700 5» — — 
+5 633 480 _ .. 

— 1.5001.110 .- _ 

-IQ 2*20 ZOOO 

-S 823 700 04 — 

6^60 5.480 

-3 852 016 

-1 747 42S - ... 

♦20 Z290 1.700 _ — 
+1 587 404 -+ — 

♦151.(00 837 _ .. 

— 1*801.280 

+5 475 360 _. 

♦6 *W 288 - 

. 1*30 B4D 08 
-2 3S7 2E2 _ 
-21.010 864 _ - 
♦1 573 432 _ ... 

-4 734 561 1* _. 

-10 l,l!D 615 — — 

+101*20 1.090 

+? 815 B74 

+20 1*20 1.050 .... ... 
-90 5100 3.700 — — 

+2 74B BIO 

-ID Z210 1.700 1 2 — 

-5 722 545 — 

+11 B62 679 0* .. 

— 1.650 1.070 . 

. 1*40 1.099 

— 1*40 7BO ... 

-3 605 400 

-14 STB BIB 0* .... 
+9 1.100 705 1* _ 

-9 851 566 0 7 

555 367 10 .. 

_ 730 591 ._ __ 
_ 983 670 _ .... 

♦1 907 533 ... 
-500?! 50017*00 

♦ 20 3*30 2*30 ... 

.... 1*20 1.110 - 

-5 S3ft 326 — — 
♦7 597 415 - . .. 
-10 1.3SO 1*70 a7 .... 
+2 620 421 ... 

+10 1.720 | .380 — 

... Z020 1J10 

.SO Z20O 1.570 . .. 

+20 1640 7.7BD . — 

... 3*60 Z740 — _ . 

♦3 S70 426 

-17 708 620 . 
+10?.7WZ*1M _ .- 

. Z140 1*50 0.8 
+5 760 <50 _ 

♦9 829 632 ... .„ 

... 730 470 

+10 1*50 1.480 

_ 1*60 1.190 — ... 
-9 78ft 575 _ .. 

-7 678 670 .._ 

_ IZ60 900 

— 779 433 — ... 

-24 823 679 ... 

-3 437 285 

♦ 30 2*001.470 . ... 

+9 696 471 1.0 - 

... ZOftO 1.430 .. 58.4 

-10 754 51S -. _ 

-10 733 524 

_ 3.460 zeeo 

_ 7.250 1,760 _. 

.. 527 330 - 

— 1*50 965 .. 

-3 605 330 ... . 

♦3 880 432 .. 

-4 895 345 - ... 

♦2 436 2B5 

+1 418 27? ._ 

♦30 1*00 635 

.. 1*30 1.050 l* .... 

.... 1.430 930 

-17 see 020 _ — 
♦14 1*10 592 1.1 
+20 2*30 1.830 ... 

.... 1*10 1 J50 „ 

♦30 1.250 BOO 

-10 1.3501.110 

-20 2290 1 .940 0 ft .... 

. 1*50 980 .... _ 
-1 564 350 1* ... 

+2 869 880 1.0 47.1 
-12 1.030 734 -. ... 
-30 MW 7 80 .. ._ 
-8 869 634 _. . 

+1 745 520 

-4 1.100 B50 _. ... 

-81.160 900 .... _ 

♦ft — - — 


sata £90 

THT ZJ5 

n»W 4.60ai 

Vfetmv 8*7 

WMnp 740 

warm a 

HVytfTi Z36 

name azo 

Weedtl 4*6 

HThMh Z84 


-02 170 2*8 13 207 
-.02 2.74 1*1 _ 

.. 4.72 326 16 
+ 808 8.10 5* — 
-29 8.50 020 1.1 
-OS 0 32 7.30 2.0 _. 
-*1 2*5 Z16 4* .. 
+*4 555 4*3 4* 

-*5 5*2 *70 1 7 .... 
-01 3*2 Z7D 42 ... 


530449 BnrtBt 
33000 BracnA 
9138 BmcOf 
14212 CAE 
3B624 OttobRa 
7100 CBmOD 


- HONG KONG (NOT 14 / KKLS) 


AmojPr 955 
BtAlO 33*0 


caisspa 37 
ChUon 38J0 
CTNfclr 03 
Drift* 7*5 
DbeP 23 
Crttaro IB 65 
Of atm 9.75 
QEB8M 4*0 
Guam 35 30 
HSBC 0950 
KiiimO 13*0 
HSenra 58 Z5 
mrtiQi 1030 
Horfin e*5 
Hat4jnd 48 40d 
HKChQ 14 
1*0** 1025 

HR' AT 31 JO 
HKB9 33.50 
HKLam 10*5 
WOWA 1785 
HKTai iS*0 
Hoo+ti 700 
HutttiW 34.50 
Hyson 1900 
JirtnM 8.10 
JMatn a? 
JSma 28 10 
HU Bus 14*0 
ItandOr 9.70 
NnrtMU 24*5 
RllOuA 35.10 
SHkPr 57ZS0 
SnanBt 13*0 
SrwBE 2*0 
SlmaQ 915 
S DP4P 4.75 
SHK Co 3 77 
Si MaA 57 
SwwOB 8*0 
I«Br 3Z70 
YWral 29*0 
Wtnoch 16.10 
WkigOn fl GO 
vmsor 10*0 


MALAYSIA iNoy 1 


am/M 4 «? 

Gentng 2Z20 

HLOOU 14*0 

UaiBnc 16*0 a) 

MaSAi 3*4 

UuPup 4 ID 

PBB 4.10 

StmO 7.10 

lewmi i9*o 

Teraga H 


+.15 15*0 8*5 4* 62 
50 28*0 *1 232 
... 15.70 11X40 3 8 .. 
+*0 52 30*0 2.7 _ 

- 10 57 37 3* 35.7 

♦25 61 59 ZB 85.4 

♦*5 1< 8.15 — — 

— 27201880 1.7 _ 
... 19.10 16*0 16 14.8 
+ 10 16+0 9.48 0* — 
+ 03 8*5 4.10 Z9 — 
+.10 45 SflJO 1* 

-75 131 80 13 — 

+ 05 21.901120 4.7 40* 
♦20 6020 47.75 3* 27 A 
+ 15 1330 080 3* Z6 
_ ZOO 460 4/4 
... 60.50 32*0 5.4 ... 
-.10 2425 13 22 20* 

-Oft 15*0 10.10 ZO 6* 

♦ JO 54 2880 32 13* 
-05 35*0 2030 3.6 — 
-.15 31.7517*0 0* — 

_ 3025 17.75 *019* 
♦.05 17.70 12 3* 

♦ *51Q.BD 5*0 47 

♦ .40 4220 2750 2* — . 

+ 15 33J5 1BZ5 42 _ 

♦ D5I3I0 7*0 06 — 

-.50 8*30 4&75 04 — 

-ZO 38.50 24*0 04 _. 

-ZO 2512*0 232 22.7 
+.15 12 BO 020 OS 
+.15 4230 2020 42 ... 

... 39 30 ZO 65.0 

_. 77 41 JO Z4 6&2 

... 1650 11 ZB 466 

-ZO 815 2*5 6 0 7* 
-05 15*0 9.15 118 20* 
+ 05 5.45 JBD 63 — 
7*0 3*6 67 
-Zft 71 50 Z0 164 

-101120 a 26 15* 

+20 37*0 25 24 

+ 15 41 25 BO 2Z .... 

_ 23*0 14.75 Z2 
-*S 1660 9*5 Z4 _. 
+.10 17 40 9*5 73 ... 


-02 6*0 
+ 20 25.75 1 
+ *0 10.10 1 
-.10 19*0 ' 
-02 630 
+.22 6 B 5 
+.06 6-05 
+.2S 840 
+.10 34.10' 
+.10 20.90 1 


32831 CbnvHO 
1575 


- 5MGAP0HE (Nov 14 / SSI 


... 12 70 
.. 10 60 
-02 3 M 
_ A56 
-.10 BBS 
+ *0 1350 
-ZO 18.70 
+ 05 7.80 
+.10 15.10 
17 JO 
_ 3.BS 
♦ 04 4-26 

5*0 

-10 11 AO 


10*0 20 6.4 
15 0* ... 
2-3* 14 .... 
Z4S 3 4 .... 
4*2 5 4 - 

9 1 5 .... 

11 1* 

5.75 08 — 

10.40 l* ... 
13.10 J* .... 
100 1* — 
3.1B 14 
166 1.7 . . 
B/IS 2* — 


AUSTRALIA INOT 14 /AuSIS) 


Ampota 177 

Amns 8.30 

ANilon 259 

AMZ Bk left 

Aus6U 4.10 

ANI 1.41 

BMP IB BfttS] 

BIB My 243 


-20 2.i oi l 
-5 400 
+7 9*6 
-19 715 
-10 1.340 
-20z*ai: 
.100 13.00 ! 

.... 1,470 1 
+ 11 1.Q50 
+20 1.660 I 
-ID Z<62 1 
♦ 10 «0 
-17 82ft 
+8 570 
-10 2*70 : 
+5 B23 
... 1.310 1 
SOD 


... Kansu 423 


_ 1*70 982 10 _ 

:? S3 £ :: :: 

. 1.570 1+40 _ .. 

♦10 1.^ 1 070 _ 

;s sis 3as i :r. 

+101*70 Bis „ _ 

-it i.o«o 77o n 

♦30Z000 2Z50 1.1 .... 
-20 1.710 755 
-4 372 2ft» 

. 1.700 1.230 . 

2570 1.700 0.9 . 

-ft fl53 a5ft . 

—4 809 696 
-7 773 502 
-2 833 533 
-19 9» 575 
-2 1.110 74B15 — 
.. 1*40 990 . _ 

1*90 1.460 

+40 6.510 4.440 03 .... 
-101.500 1.050 1 5 .... 

74* 600 

. 4J330Z900 04 61 1 
-3 536 4Q2 

+3 779 530 1 * — 

♦20 3 240 2.410 - .. 

+6 502 300 1* 

-5 810 438 1 7 .. 

-1 1 .020 70ft .. 

+10 4 650 3*30 .. 

-20 1 770 1*80 ... 

-10 658 447 

-10 1 540 1.230 .. 

+4 703 515 

2660 2 1 10 04 . 

- 2150 1 010 

+10 2370 1*50 
-4 1 (Mil 860 

♦9 609 415 

-3 1 HOO B7D . . 

♦ 10 7*00 5.350 as 
+ 180 9.540 4 450 
-20 4.650 3*70 . 

-10 1. 920 1. 580 06 . 

. 13 M 1.060 . . 

♦30 1*10 1.120 
♦9 1.160 629 
♦10 1 490 1.060 1 6 _ 


BffKPtl 130 
CSR 4*3 

CRA 17*4 
CbHw 3 

Conm 116 
CtAmat 830 
COMM 4.07*1 
Cmafca 3 10 
ConwnBk 7*2 
Cmara 1Z0 

DomMng 0.34 

Email 4 07 

Bigyte 138 
FAT 0.8010 
Pam* 282 10 


aofiut 2 27 
GMKalg 1.13 
GdmanF 1*1*1 
HnJls 

IWG i-u 
HmstkG 1.88 
IQAub 10.70 
Mdsni 3*0 
Unto 16.58 
Uor N 2.45 
MM Z4B 

MBViwN 693 
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NORTH AMERICA 

CANADA 

TORONTO lNovl4/CanSi 
4 pm dose 

236897 AntUb 17% IT? 

17526 AgnEaa 151j -4.PP, 15J? 

791163 AfrCBa 6% +<. SBU 6>. 

375452 AJbtaE 18>a -% tin 19>l 

672 ATONIC 14t S1*» 14% 

534637 AtalAJ 34 +% SMb 33% 

477179 AmBar 31b -NiSm an, 

3300 AlcnQ 14% S14N 14 

90E3D Avanor 25% -% £5% 29% 

14300 BCSuoAl 8% +>g 56% 8% 

14149 6CTd 25% 575% 25% 

899040 BCE 46 -% t4«b 46 

340 BCE MD 42% _% Wh 

4100 BffitA IS 51 5 14% 

620 BnraH 10% SiDl 10% 

£45888 BkMora 4 24% *% B25 24% 

375310 BUNNS 27% +% 377% Z7 

473901 BaSiiEx 210 -Z 213 205 

105242 BmtnKfl 21% C1% 21% 

■ TOKYO- MOST ACTWE STOCKS: 


Nippon Steel 

Nissan Motor 

Asfu'fcam Bank - 

Sharp Carp 

ToJJIn 


338195 PDamar 
PtnmCp 

PourPn 


188m HoOMiui 
52730 HngOI 
3081 FtoedSt 
104628 Ran En 
51000 Remo 
83780 Mgel 
23685 
6+100 

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21000 ttoyOrt 

Monday, November 


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fttet anotoitf Jahkun 

HUES - Pieman ItoWN n m anWI an lha 

knMai mmgn ana n oraOj %ct nM 

K tepaAiH MB i> 1994. BOB Tmnta 8 
MHbM B DmlBW nnwM ■) it 
AridNU 1C 6 sraa us hl n E» tW*s. » E» It 

FT FUSE ANNUAL REPORTS SERVICE 
Um bbi tobb biMM innal/taMn npai b> any 
anporr BflMaan aM 4 Man oou Mew 
Pmii BUg 081 778 0770 IGPB> 34 Min kanOng 
wMEVlkUi rn SOL S aflna BOA MBBN SB 
UR. dri +44 B1 77Q 0770 or to *44 81 770 9822. 
hBaom «■ Ub IBN a BH IM lWttig ra. Mlto B 


Stocks 

dosing 

Change 


Stocks 

Closing 

Changs 

Traded 

Pricas 

on day 


Traded 

Prices 

on day 

7ffm 

382 

-4 

Toshiba 

3.2m 

704 

-7 

4.3m 

788 

-1 

Tokyo Tatemono 

3.0m 

560 

+5 

4.1m 

684 

-1 

M’bfeW Heavy - 

2*m 

740 

-2 

3-Bm 

1,770 


Kawasaki Steel 

2ffm 

423 

-3 

3.6m 

565 

-3 

NKKCorp 

2.2m 

280 

+4 


Any time any place 
any share... 


Instant access to up-to-the-minute share prices from 
anywhere in the world 


Whether you're doing business in Berlin or hatching deals in Hong 
Kong, FT Cityline International can link you with all the UK stock 
market information you need: 


INDICES 


.USJN&LCES 




At DdbndBEtvim 
Al IMng[1/IAQI 
Atetrii 

CfB* /MW3W12IMI 
TtacM MH42/119T1 



Ba20 (1/1/911 
Bnni 

BbMpB (Z913B3) 

CMto 

lfatfe Mtl+0975) 

C amiM tei (1975) 
FMuo^fvima 

CUe 

RAGED (SVISffiOD 

Dsamarfc 

C g p a rtw g arffi(V»e3] 


Nh Nov 

n io 


M 1875179 19106*3 25479*3 1&Z 

1326* 1962* 1871* 2340*0 3!2 

974* 9S0* I01S2 113110 V2 

38487 38030 387*5 489GB W 

102949 1030*0 1034*2 1222*5 Iff 

1387*1 K) 1307*9 70003 M 

M 495200 499200 501000 13/9 

hi] 3908 09 3901*1 <278*2 201 0 

U 4170*8 4179.19 «0B*0 23ff 

M 2014*5 201019 2182*9 Iff 

M 5S07.1 5®a4 5S7&20 IS flO 

341*1 340*0 33aS9 41079 2/2 


NOT Nn 

14 11 


1994 Don Jones 

Ugh Low 


1826*0 14/11 
SOUS W 


37094 25/10 

1011*8 ee 


329005 20M 
385380 2«ff 
1888*6 28S 


FCjMOT 19 7Ej 

IMhnrtBWl 

CBS IWnGen^d 832 
CBS AM Sir (EdA 83) 


totaSBHsenm 

Ptm*m 

Maib Corap (2/1 fflS) 


SESAI-SlponeW75] 
SotlUl AfctCA 
J5E Gold CtB/wm 
JSE«t (2B4H7BJ 
Rtmlh to wn 
KdflaQnt£<4/ir80r 


M 2926*9 2492*2 2B8J.17 872 

437* 4351 437* 454*0 31/1 

Z74Z 7712 274.7 294*0 3W 

2054*1 207663 30B&BS 2(38*4 3 12 

1050*6 1046*9 1047*4 1211.10 28/2 

2309.40 232061 286&20 3300*7 in 

2902.1 2089* 28300 3226*0 102 

565*7 563*3 567Z5 641*1 4/1 

2154GV 2104* 21700 2S3«*0 7/9 

5734*1* 5801.0 67700 6801*0 1411 

112057 1122.57 1126*7 113075 8711 


406*0 21* 
25790 21* 


Hw 

ll 

Ho* 

10 

HW 

9 

1994 

Hftb UM 

Sbiomwi 

Law 

3801 47 

382199 

3831 75 

3978*5 

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359336 

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397035 

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41.22 

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94 32 

94*3 

94*7 

105*1 

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94 32 

111/111 

10077 

118/1093) 

54*9 

(l/ltl/81) 

1472-26 

1463.44 

1487 17 

1062Z9 

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143050 

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12*2 

0777X3 

17671 

177 50 

177 43 

227*6 

an 

175*5 

<20/91 

26048 

01.093) 

1050 

(3/4321 


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Dav't hgr. 3871-Wi (J6W.C6 i Iw 3795.4 itOBw M ] (Aciuahkl 

Standard and (Rears 

CampKne j 467 3S *64 37 46*4D 482*0 438*2 482*0 


1748*0 14/2 
644000 1!W 




& tc 


i} \ ; . r: V;-0A : -^ 

a- A - 

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SS) P1/1M0I 1291.71 ' « '■&■* J® 

etc 40(31/12*71 1941*8 B 194B35 23»a3 2/2 


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813*1 610*8. 804*8 1194*8 18rt 

SSifflN 837192 8367*5 B390J6 12201* 4rt 


1227*1 25/10 
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742*4 5/10 
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Today 

bBOd Crapibn 1B6& 270QZ6 269642 26537* 28883*0 111 

WHO 

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482*0 

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448.04 

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752 12 

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54 87 
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1138.72 2700 
876*7 27/10 


Dow Jor« InO. Dlv T10B 2 78 2.78 2.70 2 71 

Nov 9 Nov 2 Oci 26 Year ago 
S £ P Irxl Dlv yield 2 3& 2.39 2.3B 2.41 

?»PI«I P/E lalio 20.93 20.96 20 82 20.81 

■ STANDARD AMP POOB3 800 INDEX FUTUtieS 0500 times Into 

Op^ri Latest Change High Low EftL vd. Open irrt. 
Dec J6L'85 464 65 -1 70 464.80 462.55 55,366 £07.733 

Mar . 465. 70 -2 45 - - 2.956 28*52 

Jun - J 8950 -2 55 - - SS 3.G46 

CfM» mieroBi hcpuipi orr ra It-imoui day. 


128048 V10 
113048 &1D 
280*8 71/3 
141*5 21/4 


■ NEW YORK ACTIVE STOCKS 


Owe Cnangi 

once an day 


580*6 ion 
OWO TOT 

17389.74 4 H 

7 am tn 

1445*7 4/1 

1S7U3 4fl 


9 CAC40 STOCK MDEX FUTURES JMAT7F) 





Open 

Sen Price Change 

High 

Low 

EW. vol 

Gcwo im 

NOV 

1950.0 

1949.0 -7.0 

1355.0 

1925.0 

16.452 

rj.554 

Dec 

1861* 

1957.5 -7.0 

1961* 

1&4S.0 

193 

26.023 

Mar 

1384.5 

19800 -7.0 

1984.5 

1984.5 

1 

6.833 


Tapforos 
EMC Oxo 

rj« Htoem 

P«Wto 

Mach 

Pimp Moms 
Seas fte 


7.914.500 53'-. 

2.837.600 23 

ZB97.500 6+- 

2454 800 36:+ 

Z341.MC W% 
I 981 000 61M 

1.965.500 SO* i 


Open kuna Apra tar pmvtaue day. 


SWww men 1029*7 iraoifi 

. . . ■ .-I ■ ira CmtB & 111BJ0 BWMOTuea Ol OMnaitaB in 100 OTcegc AuBOTta Al Or*«v end 

- sa N» 18: TOTrt" W*9' 1 “ d ^ l £, ,s !iirS. UB Qm, S0F250 CAC40, &»o Top-ioo, BED Omt* Torono ConguMeab A 

and DW : IHSW afta+ra- ^ Not id + 2091.04 +17*7 


Amer Express 1.953.1 00 
IBM 1847 300 

CounVywKfc 1*25.900 


■ THA1HNQ ACTlymr 

• voume irnOanj 

NOV 11 NM 10 NM 9 
Mow York Sf 210428 280.876 337.783 
Anw 15057 15*70 16 175 


NYSE 

bauas Iiaded 

Bees 

Fals 

UnchangM 
New Hitfe 
New Lorn 


2*70 

2*02 

2,911 

619 

807 

993 

1.551 

1.336 

1.199 

700 

759 

719 

IE 

26 

33 

223 

173 

169 


•J Ccraemi - l^dcubled « 1500 'jMT • EX3U0H3 DaVK I Ir^tosmnl fJui Lit+-j«. Rnaraal and TtmpatolUon. 
ft The CL1 JndL into* Hw.wai asy ^ to« an rt* Myngw of me rugnesi am Mwen pntt* reached during we day b* eadfi 

»eta whenoa tt» anuai days mans, aro bwft itwohad b> T«le*un> repmsen! me ragnasi and kraesi values ma ms mdex not leached 
dunng ms Bay. (The figora n Drask^ns are t***tot. day'al f autyaa » ohiaai recaimiaiMi 


The Future's History. 

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information tnan anyi 







FINANCIAL TIMES TUESDA Y NOVEMBER15 1994 


ipmckmUotsmtxfH 


NEW YORK STOCK EXCHANGE COMPOSITE PRICES 


a tv 

HM IH. W S» BH to 

M* Im Stack ft t e n i« Im ttaofc Oast 

17 % i 2 $aar a« 19 n in 12% 12$ 12*4 

is i2%allj*a aie m *0 3snna$ 17 % it% +$ 

7ft57%«iP* 1.68 £3 221X4 74% 73^* 74$ ♦ $ 

72$ 48% AMR 109 2180 51% 50% 51% +■% 

5 3% MX 12 95 3% 3% 3% 

«$ 38Sgfla 100 42 31 522 48% 47% 47% -% 

S%25$«1*L 07E 2J 17 74S9u32% 33 32% +% 

IS^IftAbBUI* 050 10 11 42 13% 12% 13% +% 

23% 17% ASM hid 052 15 72 20% 20% 20% +$ 

16 11$ Acorn* 13 *5 14$ 14% 14$ +$ 


72% 48% AHt 109 

5 3% MX 12 

95% 38% ASA 100 42 31 

32% 25% AObBL a 75 2J 17 

15% 11%MK9f¥ 050 10 11 

23% 17$ABMhd 052 15 

lBil$Acpna* 13 

31 22ACEIH 0.44 1.0 23 
12% 9% ACM M tat 1.09110 
10% B%AGMBy0ni 0.0011.4 
10% 6%AOIfiWSp* Q9G14J? 

12 7$ACUG*Sdx 109118 
11% 7% flOW Mai* 1.0914 4 
9% SACMttmdx 072 17 
15% fttaneOr* 044 17 23 


13 9K 14% 14% 


144 1.9 23 843 24 3% 23% 

1.09110 377 9% (S% 9% 


BE 7 7 7 

1096 6% d8% 8% 
674 7% 97% 7% 

335 7% 7% 7% 
72 0% B% 8% 
10 11% 11% 11% 


G% Abm B ad II 398 11% 10% "$ +$ 

SJflCOnSj 0.60 22 14 5 27% 27% 27% +$ 


13% 5$ActM 055 17 2 203 9% 9% 9% 

18% 11% Anson 27 1784 17 15% 16% -% 

18% 16%flttnoBflr 058 45 0 34S 17% 17% 17% -% 
M48$MWs» 100 55- 3 53% 53% 53% -% 

31$1B$MMc 100122 0 6317 34% ?4% 24% 

6% Sflowsaftp aie 30 is 42 5% 5% 5% -% 

20 15 Mm IK aio 05120 4 18% 18% 18% 

64 49% Aegon MM 1.47 24 11 27 62 61% 61% -% 


arm 

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